The Impact Crew: Consumer Fraud In Ghana - 2016 In Review

Consumer fraud is misinterpretation in other to deceive consumers into falling

victims to the purchasing of inferior goods and services. Consumer fraud is on the

rise and as a matter of urgency and it needs to be curbed as it is causing serious

problems to many individuals and organizations. Victims of consumer frauds are

professional like teachers, doctors, lawyers, lecturers, only to mention a few so no

one should be labeled as culprits in relations to ones educational background. Many victims

are don’t report to the police service that they have been scammed, officials

estimate an increasing rate of consumer fraud in the country.

Basically consumer fraud is on the rise in distinguishing shapes and forms as

deceptive means of financial losses of consumers as it may seem legal. This practice

is unlawful and deceptive as it ruins lives and families. There is a misconception

with regards to those who falls victims to the challenging inhumane practice. Many

are with the believe that those who falls victim of consumers fraud in it numerous

forms and shapes are illiterates and ignorant to an extent but this is highly wrong a

s each and every individual who lives in this dynamic world can be victimized by

consumer fraud.

Microfinance scam; saving in a banking is quiet profitable but it tends to become a

tragedy when one invest his or her hard earned money in a fictitious banking

institution. These banks operates without genuine banking license from Bank of Ghana

(BoG) and takes advantage of consumers who may or may not be enlightened with regards

to the banking licensing. An individual should create an alert when he identifies any

banking fraud to the necessary authority that holds such cases. In 2016, Ghana experienced

one of the biggest consumer frauds in the banking industry which resulted in lost of

huge financial loss. The various banking institutions that were involved in these

scam included Diamond Microfinance Company (DKM) – GHS113 million, God is Love

micro finance only to mention a few.

Internet fraud; when today seems just like yesterday and the world has become more

global than before, a new era where something called internet pave its way into the

new world and the work of the postman was no longer recognized. When one good thing

is invented another is improved and as one thinks of how to make the world a better

place another worsen its existence. The modern day man is so dependent on the

internet for survival; research works, online library, work from home, and online office.

There is no doubt that the work of the internet has come to be of enormous

significance to man but when it is used for illegal means it turns to be a necessary

evil. Why is it that it’s mostly common in African countries and why is it that the

culprits are usually men in Europe and America.

No one should be quick to make judgments and label those who engage in these

activities as been with low moral standards. This practice has been in the system for

quite a while now but its tendency increases as men and women from all ages engages

in the practice. This act has been almost impossible to deal with because of the

state of the economy, moral standards, level of internet security only to mention a

few in these countries. African countries which engage in these countries include Nig

eria which was the first country to engage in such practice, In Ghana we refer to

these who engages in these activities as “sakawa boys”.

This ill-act is now popular in Ghana. I don’t blame them neither do I support those

inhumane acts. The fact is that, people will work really hard in the scorching sun

from dawn till dawn but still wallow in untold poverty. In preventing such acts, one

must never disclose his or her credit and number, check routing information or other

banking information to telemarketers or other solicitors. One should contact his or

her financial institution if he or she receives correspondence claims that his or her

financial account is been jeopardized.

Again, foreign lottery scam. This is mostly initiated by emails, telephone calls,

fax, and post mails claiming that a consumer has won a prize in a lottery. The victim

may be asked by the fraudulent operator to disclose his or her personal banking

institution or account details so that he or she may have the prize deposited in his

or her account with his prize in a form of cash.

The fraudulent operator will employ unauthorized means to withdraw huge sums of money

from the victims account. Also in some cases the fraudulent operator can ask the

victim to send money to a said account so that that money will be used Ithe

processing of the prize won by the victim. This type of fraud is mostly targeted to

the elderly. Be skeptical when been presented with alottery that tells you that you

have won a prize lottery if you don’t real participating in any lottery of such

form One of the means that can be adopted to curb such occurrences is that, one must

not provide his or her personal banking or financial accounts details to anyone who

may present him or herself in the form of being a lottery agent or whatever.

More importantly, fake local charities and N.G.O’s. Over the years human beings

have advance not only positively but negatively. Instead of aiding the poor people

and needy, they tends to take advantage of the cry of others and makes huge sums of

money from it. Fake charities employ different techniques to deceive other charitable

individuals or philanthropist. Before one donates to a charitable home, this is as a

result of the increasing rate of charitable institutions in the country.

Identity Theft; this happens an individual personal information like name, social

security number, banking credit card information or banking account number and uses

the stolen information to impersonate the victim in order to act in a fraudulent

manner, theft or other crimes in different forms. One will be advised to keep some

personal information’s like name, social security number and banking account number

personal and should not give it out to untrusted persons or may not make it available

to the public in order to avoid fraud is various forms and shapes.

Lastly Mortgage Frauds;this form of fraud is on the rise today as they are often

carried on by real estate and mortgage professional enabled by their supreme

authority. Consumers’ needs to protect themselves from these mortgage frauds by

seeking referrals and avoiding unsolicited relationship, checking licenses, and

consumers must walk away from any mortgagecompany that do not provide the necessary

documentation that certifies the company.

Akwasi Brobbey

(Senior writer and editor at TIC)

mr.dbrobbey@gmail.com

0548412192/0266175686