Investment Scams Can Look Legitimate, Here’s How To Spot The Fakes

Not only we have to be vigilant against the deadly virus ravaging the nation at this moment, investors who are looking to earn extra income during these difficult times need to be wary of becoming victims of investment frauds. Bursa Malaysia has urged investors to be on high alert and to protect themselves from becoming victims of these fraudulent parties who have become bold lately to the extent some have been using Bursa Malaysia name and corporate logo on their website or promotional materials.

Its reported that during times of uncertainty, such as the current COVID-19 pandemic, scammers try to lure victims into participating in dubious investment schemes and activities. They often use unlicensed or unregistered companies, websites and promotional material that mimic legitimate financial institutions to deceive the investing public.

Watch out for investment scams that typically carry the Bursa Malaysia name and logo on its marketing-related materials and social media postings, offering high investment returns with a guarantee of little or no risks. Investors are directed to “spoof” websites and phone numbers set up by scammers. These fake websites look nearly identical to the actual sites of legitimate financial institutions.

Calls to the phone numbers provided reach the scammer who pretends to be an employee who will then direct investors to transfer funds to an account with a different name. Members of the public are reminded to invest with licensed parties only. To view the updated investor alert list of unauthorised websites, investment products, companies and individuals, the public is advised to check on Bursa portal for latest updates.

If you want to invest take these precautions, verify the information and do not rely on unsolicited marketing materials. Begin by conducting a simple background search online on the broker and firm name, this might bring up news reports or online conversations on details of any potential controversial activities. Investors can also search if the company is registered with the appropriate authorities such as Securities Commission Malaysia or Bank Negara Malaysia. Financial professionals and their firms are usually required to be registered with regulators.

Comparing and confirming websites or social media pages should also reveal more about the company, fake websites or social media pages will often have odd-looking (or low resolution) logos that do not match the legitimate company’s logo. Do an internet search of the company to determine if the website or page is legitimate. Most scam websites may have URL addresses similar to those of legitimate websites, or use legitimate-sounding names and URLs.

Avoid unusual payment methods. Be cautious if you are instructed to send funds via online transfer to an individual bank account. Seek independent, professional advice. Be suspicious of unsolicited investment offers made online, on social media or over the phone. Take time to consult with a person who is not participating in the investment, such as an independent lawyer, banker, accountant, financial adviser or someone with financial expertise before investing.

Do not feel pressured to hand over your money until you have had some time to consider the investment carefully.
Bursa Malaysia does not engage third party agents to represent us. If you receive unsolicited and/or suspicious communications relating to or claiming to be agents of Bursa Malaysi

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