Amid the heightened prevalence of fraudulent online investment schemes, a cybersecurity expert has highlighted critical red flags to help the public identify these scams.
For hundreds of thousands of Ghanaians, the promise of quick riches has lured them into fraudulent online investment schemes. Many of these victims only realize the deception after losing their money.
But cybersecurity expert, Abdul-Mumin Iddrisu agrees that although identifying such schemes are very difficult due to technology or sophistication, the good news is that they are not impossible to make out.
Speaking during The High Street Talk, an X Space organised by The High Street Journal on the theme “Unpacking Illegal Online Investment Schemes: Risks, Red Flags, and Consumer Protection”, Abdul-Mumin Iddrisu said these scams often leave clear warning signs long before they collapse.
He therefore outlined nine major red flags the public should look out for before committing money to any online investment platform.
Guaranteed Returns with No Risk
According to Abdul-Mumin Iddrisu, one of the biggest warning signs is the promise of guaranteed profits.
He emphasized that no genuine investment comes without risk. The cybersecurity expert is cautioning that any platform assuring investors of fixed or guaranteed returns regardless of market conditions should immediately raise suspicion.
Pressure to Invest Immediately
The cybersecurity expert reveal that fraudsters often create a false sense of urgency, convincing potential victims that they must invest immediately or lose a once-in-a-lifetime opportunity.
Abdul-Mumin Iddrisu advised the public to resist such pressure. He stressed that if someone tells you to act now or miss out, take a step back and reassess the offer.
Returns That Sound Too Good to Be True
Promises such as earning 10% every week, 30% every month or doubling one’s money within a short period should be treated with extreme caution.
“If it sounds too good to be true, it probably is,” he warned.
No Transparency or Regulatory Approval
Another major red flag, he says, is the absence of transparency. Abdul-Mumin said investors should always verify whether a platform is licensed, who regulates it and whether it has any recognised legal or regulatory backing.
He calls on the public that if you cannot verify who oversees the business, you should think twice before investing.
Earnings Depend on Recruiting Others
He further indicated that many fraudulent investment schemes rely heavily on recruiting new members rather than generating legitimate investment returns.
According to Abdul-Mumin, when participants are constantly encouraged to bring in more people to earn commissions, it often indicates that there is no real underlying business or product supporting the scheme.
Difficulty Withdrawing Your Money
The expert says victims often encounter unexpected obstacles when attempting to withdraw their funds. Fraudulent platforms may demand additional “verification fees”, “clearance charges” or other payments before releasing money.
Abdul-Mumin Iddrisu said these requests are classic warning signs that consumers should never ignore.
Excessive Social Media Hype
Scammers heavily exploit social media to attract victims, using flashy success stories, testimonials and aggressive marketing campaigns to create credibility.
He therefore noted that widespread online publicity should never replace proper due diligence.
Requests for Sensitive Personal Information
The expert also warned against platforms requesting highly sensitive information such as Mobile Money PINs or unnecessary personal details.
Despite repeated public awareness campaigns, he said many people still disclose confidential information, often after being caught off guard by convincing fraudsters. Consumers should never share security credentials or financial authentication details with anyone.
Emotional Manipulation
Perhaps the most powerful tactic used by fraudsters is emotional manipulation. Abdul-Mumin Iddrisu said scammers deliberately exploit people’s fear of missing out, desire to become wealthy quickly, financial struggles or family responsibilities to pressure them into making impulsive decisions.
Whenever an investment opportunity creates emotional pressure to act immediately, he advised people to pause, verify the claims independently and only proceed after carrying out proper checks.
The Bottomline
Abdul-Mumin emphasised that fraudulent online investment schemes continue to evolve, but their tactics remain remarkably similar.
He urged the public to remain sceptical of extraordinary promises, verify the legitimacy of every investment platform and resist making financial decisions under pressure.
He insists that the few minutes spent verifying an investment opportunity today could prevent the loss of a lifetime’s savings tomorrow.
