Category: Investment Fraud

Recognize the Characteristics of Fake Investments

Recognize the Characteristics of Fake Investments

Recognize the Characteristics of Fake Investments – Currently, there are many people who want to get an advantage in the future. What they do is invest. But in choosing the investment that you will run should not be arbitrary. So, so you don’t become a victim of fraudulent investments, it’s a good idea to first read the discussion about its characteristics below. See also prevention tips to avoid these investments.

1. High Return with Small Risk

Every investment has its own risks. The higher the amount invested, the higher the risk that must be accepted. You have to be careful if someone offers investments that promise high returns, but with little risk or no risk at all.

If this is the case, you should be suspicious. Why? Because when compared to legal investments, you will definitely be given an explanation of the risks that you will face later.

2. Always Urged to Join the Investment

When promoting their products, fraudulent investors usually insist and force their potential victims to immediately join their investments. Some of the invitations are limited time, limited space, exclusive, and other invitations that urge you to immediately invest your assets in their place. Well, if you are pressed like this, it means you should suspect it as a fraudulent investment.

3. Restricted Information

Generally, a legal investment will explain in detail to potential investors about the investment model and the management of the funds. However, this is different from a fraudulent investment. When you ask for an explanation of the fund management model and where your assets are allocated, they usually give answers that go round and round or even avoid these kinds of questions.

Also Read : Most Popular Investment in Indonesia

4. Record His Fictional Tracks

The next characteristic of fraudulent investments is their company track record that cannot be accounted for. Usually, these investors will claim many things, ranging from claiming to have years of experience in the investment world, to someone who dares to say their investment company received awards and made extraordinary amounts of money. However, when they checked the truth on the internet, there was no evidence of the data they mentioned earlier.

5. Unclear legality

Before running its business, an investment company must register and wait for the results of operating permits from various parties, one of which is from the Financial Services Authority (OJK). If an investment company cannot show its company operating license, you should suspect the investment company as a fraudulent company.

6. Dare to use the names of famous figures

To make a business successful and convince potential victims, it is not uncommon for a bogus investment company to dare to take the names of famous people, from artists to important figures. In fact, the people whose names are listed have never invested or even know nothing about the investment company.

Investment Exchange Fraud Mode

Investment Exchange Fraud Mode

Investment Exchange Fraud Mode – With the popularity of investment at this time, of course there will be individuals who take advantage of this situation to gain unilateral benefits.

Stock or stock investment has recently become the prima donna. Moreover, the stock market or the Indonesian Stock Exchange’s Composite Stock Price Index (IHSG) has soared above 6,000 and has promising profit prospects.

But you have to be vigilant, huh. Because in 2020, the Commodity Futures Trading Supervisory Agency (Bappebti) has blocked as many as 1,191 domains of entity sites that do not have a business license as futures brokers.

Head of the Bureau of Legislation and Enforcement, Bappebti M. Syist, explained that based on the observation and supervision of the fraud modes in stock exchange investment trading, which are often carried out, can be categorized into three types.

1. Stock investment under the guise of futures contracts or crypto assets

First, investment offers under the guise of futures contracts and / or crypto assets. These entities use the internet, SMS, chat applications such as Whatsapp, Telegram, social media and YouTube to offer investments to the public.

Syist said, this mode of investment usually promises a fixed income; sharing of profits and high profits from futures contracts, crypto assets, and / or selling and buying of crypto assets that do not meet the requirements set by Bappebti.

This mode also uses a member get member system, a pyramid scheme, a ponzi scheme or money game, and the funds collected only rotate between members without being transacted in the field of commodity futures trading. The priority is to focus on attracting new members to cover the investment of old members.

“Apart from that, this mode also offers investment packages which are usually divided into silver, gold and platinum packages. The community will be lured with a profit of between 5-20 percent or even greater in a certain period of time. This system is a form of fraud that will not last long, ”said Syist.

Be careful, the fraudulent system can be carried out by duplicating the website and using a company name that is similar to that of a futures broker that has a business license from Bappebti.

“This company claims the fake legality by displaying logos from government institutions such as the Ministry of Finance, the Investment Coordinating Board, the Financial Services Authority, Bappebti, and so on to attract and convince the public,” said Syist.

The company is impressed as a legal futures broker. So, for prospective customers who are not observant, after the money is transferred they will then be taken away.

Also Read:Things You Must Know Before Sharia Investment

2. Fraud in the investment market without Bappebti’s permission

The next category of fraud mode is conducting business activities in the stock exchange trading sector without having a license from Bappebti. These entities conduct offerings on internet sites, social media pages such as Facebook, Instagram, Twitter, and LinkedIn.

This scam also created YouTube video content to introduce the Bappebti unlicensed futures broker. The content is packaged with a podcast model, tutorials for registering, deposits, transactions, to withdrawals at futures brokers that do not have permission from CoFTRA.

The mode used in this category is through stock exchange trading activities by offering commodity futures contracts, forex, indexes, options, and crypto assets.

“Most of them become introducing brokers (IBs) from foreign futures brokers by including the legality of foreign regulators. Registration is done online because they do not have an office in Indonesia,” said Syist.

This mode is usually carried out by individuals who claim to be traders, the trader community, and / or forex educational institutions. Meanwhile, funds are deposited through personal, corporate, and / or exchange accounts.

“Even though these entities claim to have legality from foreign regulators, to be able to carry out business activities as a Futures Broker in Indonesian territory, each party must have a license from CoFTRA,” said Syist.

3. Fraud with trading software or robot mode

In addition to the two mode categories mentioned above, Syist continued, currently there are offers of forex trading software / software or trading robots advertised in various national media. The software is claimed to be able to provide maximum benefits and minimize risks from forex trading.

Syist said the software can also analyze forex transaction data several years before, and can make stock exchange investments automatically (auto pilot) and provide large profits without disturbing the daily activities of potential investors.

“It needs to be remembered by the public, the use of forex trading software also has a risk of loss that could occur. Before transacting, the public is required to have adequate knowledge and skills in commodity futures trading. The public must first understand the mechanisms and risks, “said Syist.