There are many unscrupulous parties that are waiting to take advantage of unsuspecting individuals during this difficult times. Scammers tend to capitalise on fears and hardship stemming from major crisis like Covid-19 outbreaks to manipulate vulnerable and unsuspecting members of the public.
Scammers are becoming increasingly more sophisticated with their tactics. Many schemes come disguised as different types of business opportunities such as investment schemes for various types of products or services, designed to swindle your hard-earned money.
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Members of the public are encouraged to be more vigilant when making investment decision. Always remember not to fall into the following promises:
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)
Remember, an informed investor is a protected investor.
The Securities Commission Malaysia (SC) continues to be on the alert for illegal investment schemes.
Here is what you can do to avoid being scammed. Always:
Deal only with individuals/entities who/that are registered or licensed by the SC;
Ask questions and request for important information – Scammers rely on the fact that most people do not ask for the right information before they make 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 Ministry of Domestic Trade and Consumer Affairs, CyberSecurity Malaysia, Companies Commission of Malaysia and others;
Don’t be pressured or rushed into making an investment decision. Give yourself time to do research and find out more about the product before parting with your money;
Be sceptical of any investment opportunity that is not in writing. Request relevant documentations 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.);
If an investment has already been made, keep copies of all documents pertaining to your investment and your communications with the person you dealt with and the company concerned.
Always exercise extreme caution when being offered an investment scheme. Take precautionary steps to protect yourself from being a victim of scams.
The Securities Commission Malaysia (SC) had to date, following the issuance of the Guidance Note on Provision of Investment Advice on 30 December 2020, directed seven operators, comprising entities and related individuals, to cease and desist from undertaking all activities in relation to unlicensed investment advice. Providing investment advice is a regulated activity that requires a licence under the Capital Markets and Services Act 2007 (CMSA). Any person carrying on a business of giving investment advice without a licence commits an offence under the CMSA which is punishable with a fine not exceeding RM10 million or imprisonment not exceeding ten years, or both.
The Securities Commission Malaysia (SC) would like to caution members of the public of a fake donation letter purportedly from “Badan Kebajikan Thalassaemia Malaysia (944520K)” seeking donation and falsely naming the SC Chairman as its advisor.
The Securities Commission Malaysia (SC) today cautioned the public on the sharp increase of clone firm scams this year. The scams are perpetuated by companies that fraudulently impersonate a legitimate entity, including misusing the name and logo of a public listed company (PLC) to dupe investors and to solicit funds.
The Securities Commission Malaysia (SC) is holding its annual flagship investor education event, InvestSmart® Fest, from 23 to 25 October 2020. This is the seventh instalment of the InvestSmart® Fest and for the first time, held virtually.
Financial Education Network (FEN) today launched the Financial Literacy Month (FLM 2020) with the theme “Empowering Financial Freedom”. During the FLM 2020, various initiatives and programmes by FEN members and partners will be conducted as part of on-going efforts to raise the level of financial literacy among Malaysians.
The Kuala Lumpur Sessions Court yesterday convicted Afkariah Md Norani of four charges under section 179(b) of the Capital Markets and Services Act 2007 for defrauding four individuals and sentenced her to imprisonment for a period of six months and a total fine of RM4 million.
The Securities Commission Malaysia (SC) today issued a warning to the investing public on the rise of clone firm scams where a fraudulent company will set itself up to look like a capital market intermediary that is licensed or registered with the SC, in order to deceive investors.
The Securities Commission Malaysia (SC) today cautions the public to be on the alert for any individuals or entities that may try to take advantage of the latest developments of Covid-19 to entrap them into investing in illegal investment schemes.
Mark Damion Kawecki, of Frankston, Victoria, has been convicted and fined $30,000 in the Melbourne County Court for engaging in dishonest conduct related to attempts to artificially satisfy the minimum spread requirement for companies seeking to be admitted to the ASX.
The Federal Court has ordered the winding up of unlicensed financial services businesses, Secure Investments Pty Ltd (Secure Investments) and Aquila Group Pty Ltd (Aquila Group).
The Securities and Exchange Commission has filed an emergency action and obtained an asset freeze against five individuals and six offshore entities for an alleged fraudulent scheme that generated more than $25 million from illegal sales of multiple microcap companies’ stock, including four that were the subject of recent SEC trading suspension orders: Sandy Steele Unlimited Inc., WOD Retail Solutions Inc., Bioscience Neutraceuticals, Inc., and Rivex Technology Corp.
The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to warn investors about investment frauds involving claims that a company’s products or services will be used to help stop the coronavirus outbreak.
The SEC’s Office of Investor Education and Advocacy (OIEA) and the Division of Enforcement’s Retail Strategy Task Force are issuing this Alert to educate Main Street investors about current investment frauds, including scams related to the Coronavirus (COVID-19) pandemic.
