The Bank of Zambia (BOZ), Pensions and Insurance Authority (PIA) and Securities and Exchange Commission have launched the Financial Sector Joint Messaging Communication Campaign aimed at equipping members of the public with information on how they can identify and avoid fraudulent financial products, in the different ways they are offered.
In a joint statement issued to Money FM News, by the Financial Sector Regulators Joint Secretariat the regulators say the Campaign is one of several ongoing initiatives to enhance financial education following its observation that members of the public are falling prey to fraudulent financial products and misleading investment adverts offered by entities operating outside the ambit and supervision of the three financial regulators.
According to the statement, the regulators have noted that Pensioners, farmers, workers, entrepreneurs, young and old, have all been targeted in different ways, with some losing their money, including life savings, such as, pensions, to these unlicensed entities on the promise of high returns.
“As regulators, we believe that fraudulent financial activities perpetrated by unlicensed entities cannot thrive in an environment where members of the public are well informed about various financial products and services,” the statement read.
“It is, therefore, our hope that this Campaign will equip our citizens with the information needed to make informed and prudent financial decisions.”
It added that the ability to identify fraudulent financial products is especially critical at a time when Information and Communication Technologies (ICTs) have flattened geographical boundaries and enabled new, faster and more sophisticated ways of committing fraud.
The regulators have since urged members of the public to be alert in their consumption of financial products, noting that the Campaign is a demonstration of their continuing commitment to empowering and protecting citizens through financial education.
“This is consistent with the National Strategy on Financial Education in Zambia, which seeks to empower citizens with sufficient knowledge, understanding, skills, and confidence to make prudent financial decisions for themselves and their families,” the statement added.
The Campaign, which will run for a period of 12 months on various media platforms including social media, will cover topics such as: Digital Financial Services; Network Marketing; Insurance Services Products; Pyramid Schemes; and Cryptocurrency, among others.
The regulators have since encouraged members of the public to take an interest in this Campaign in order to learn more about how they can secure their money, and to only deal with registered financial service providers