Dubious Investment Schemes During Covid-19

Scammers tend to capitalise on fears and hardship stemming from significant crises like the Covid-19 outbreak to manipulate vulnerable and unsuspecting individuals. Here’s how you can be more vigilant with your investments.

Scammers are becoming more sophisticated with their tactics to trick you out of your hard-earned money.

Many unscrupulous parties are waiting to take advantage of unsuspecting individuals during these difficult times. These fraudsters are also becoming increasingly more sophisticated with their tactics. Many schemes come disguised as different business opportunities, such as investment schemes for various products or services. They’re all designed with one aim: to trick you out of your hard-earned money. The public is encouraged to be more vigilant when making investment decisions. Always remember not to fall into the ‘TIPU’ promise: T – Tidak akan rugi (investment with guaranteed profit) I – Indah khabar dari rupa (too good to be true) P – Peluang hanya sekali (offer for a limited time only) U – Untung besar (huge returns/profit) An informed investor is a protected investor. Therefore, the Securities Commission Malaysia (SC) continues to be alert for illegal investment schemes. Here’s what you can do to avoid becoming a scam victim. Always: - Deal only with individuals/entities registered or licensed by the SC. - Ask questions and request important information – Scammers rely on the fact that most people do not ask for the correct information before making an investment decision. Ensure you know who you are dealing with, the individuals behind the company and understand its products or services before investing. - Check with the relevant authorities before investing/depositing any monies with any person or company. You can channel your inquiries to the SC, Bank Negara Malaysia, the Domestic Trade and Consumer Affairs ministry, CyberSecurity Malaysia, and the Companies Commission of Malaysia. - Ensure you’re not pressured or rushed into making an investment decision. Instead, give yourself time to research and learn more about the product before parting with your money. - Be sceptical of any investment opportunity that’s not in writing. Request relevant documentation on the product and the company so that you can ascertain the legality of the investment opportunity offered. - Beware of investments over the internet. With the increase of online scams, you need to be extra careful of advertisements on social media platforms. - Secure your personal information (MyKad number, address, bank details, existing investment details, etc.). - Keep copies of all documents about your investment and your communications with the person/company you dealt with Exercise extreme caution when being offered an investment scheme. Take precautionary steps to protect yourself from being a victim of scams. For enquiries and complaints, contact the SC via email at aduan@seccom.com.my or call the Aduan hotline at 03-6204 8999 (9.30 AM to 5.30 PM Mondays to Fridays). Source: Securities Commission Malaysia: https://www.sc.com.my/