A Selangor state assemblyman warned Malaysians against falling victims on Ponzi schemes due to the economic downturn, also known as money games.
“Recently, there are individuals and companies collecting money from unsuspicious youngsters for investments, under the name of forex trading.
“These are money games. They are illegal and will eventually land you in great financial losses and a lot of trouble,” Ronnie Liu said, in a Facebook post.
Recently, award winning financial education site, MyPF also made the call, urging Malaysian to be wary of any individuals or companies who offer schemes, with incredible high returns as inducement.
Among the schemes offered under money games are:
- An illegal pyramid or Ponzi scheme.
- High returns of 6% or more every month (get rich quick scheme)
- Investor makes return on investment typically after six months to a year, and beyond that would be earnings.
- Paid to recruit people as a downline
Check their operating license
MyPF added that some of the red flags people should look into are lure of easy money by featuring excesses like luxury properties, celebrity endorsement and open flaunting of one’s title.
“It also promises returns above 15% a year and even ‘guaranteed returns’, of which only happens until the company is closed.
“Sometimes, the perpetrator will even be very open about it and say it out loud that it is a money game scheme,” it said.
Touching on the matter, Liu said that as far as Malaysia is concerned, no individual or company has the legal right to collect someone’s money for investment without a license.
“Banks, foreign exchange services, stock brokers, insurance companies, co-operatives and unit trust agencies all must operate with a license.
“And a mere registration with the Companies Commission of Malaysia (SSM) does not permit an individual or company to take your money for forex or any other investment,” added the Sungai Pelek lawmaker. – Jan 9, 2021
