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.
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 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.
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.
Don't be a Victim of Investment SCAM
Do's & Don'ts of Investing
Infographics - Capital Market Measures for Business and Industry
Infographics - Covid-19: Capital Market Operations and Relief Measures
