Although cases of fraudulent investment fraud are rampant and the news is often the headline of the mass media. However, this will not guarantee that you will not be deceived. The many 'loopholes' and opportunities make scammers find ways to attract your interest in investing. How to recognize it?

Actually, what is fraudulent investment?

In general, investment is the activity of collecting or investing assets or funds carried out by a company or individual for a certain period of time with the aim of obtaining greater returns in the future.  This investment usually involves two parties, namely the investor as the owner of the fund and the investment company that manages the funds from the investor.  There are many things involved in this activity, and some of them are the amount of funds and the purpose of the investment itself. Unlike the legal investments mentioned above, fraudulent investment is a form of investment that does not have a clear license and scheme, the type of activity is to invest in fake financial products or businesses which are often called fraudulent. In fraudulent investments, you will be asked for a certain amount of money to invest in a product or business that you never really did. Fraudulent investors will usually take your investment funds away.  Why are there still many people who are deceived by this type of investment? Because many people are not aware of fraudulent investment fraud and are only tempted by the huge profits offered. There are also many fraudulent investments on behalf of investment companies to commit fraud, so many people believe to make investments and end up unlucky.

Characteristics of fraudulent investments that you should recognize

Don't you want to be a victim of fraudulent investment scams? Here are some characteristics of fraudulent investments that you need to recognize.

1. Promises fantastic results in a short time

Don't be easily tempted by a swing of profits that are too fantastic. As an investor, you need to be able to measure how much of a reasonable return you can get from an investment. If anyone promises a return of up to 30% within one month, you should question it. How can it be that big, even though the yield or the highest rate of return on normal stock investment can only reach 27% per year.

2. Risk-free investment

If there is an investment with a large return or profit, then the investment risk is also large. If an investment is small in risk, the profit you get is definitely not too big. If someone promises you an Investment scheme with a very large profit value but small risk, then it is one of the characteristics of fraudulent investment.  They take advantage of people's ignorance and inaccuracy about investment. The most intensified mode is the lure of high returns without any risk at all. People who want to invest in investment also do not need to work. This offer of getting rich without effort is what then makes people interested.

3. Inviting you to invest with urgency

People who offer a fraudulent investment tend to approach it with urgency. There is a slight tendency to force to join immediately and prevent to delay.  This seems to show that they are chasing against time. Scammers will collect as many victims as possible before the police sniff out their fraud mode.  You have to remember, investing is a big decision. Before deciding, there will be many considerations. If you are invited to invest with a compulsive tendency, you better resist it.

4. No openness

Normally, investment companies will provide investors with a detailed explanation of how the fund is managed and how the investment scheme works. You should be suspicious if someone offers an investment program but there is no open explanation of how to manage the money and the scheme of work.  Fraudulent forms of investment usually only offer money custody or business investment whose business form is unclear. Fraudulent investment agents usually also tend to be defensive with critical behavior. They will answer with normative answers and go in circles, instead of giving an explanation openly.

5. Unclear track record

In investment activities, track record is an important consideration. Investment companies that have a 'name' will definitely be widely reviewed in various media. The name of the investment company must be easy to find. Well, fraudulent investment companies usually boast more about fantastic achievements or achievements. But after you investigate in various sources, there is no valid record of the claim.

6. Legality questioned

One of the easiest ways to find out the legality of an investment company is to see if there is a logo of the OJK, Bappebti, or other official institutions that oversee the investment field on the official website or application. After that, make sure it's authentic again.  Cross check with official sources or other sources. Investment companies that have received permits must be easy to find the data (on the official page of the institution). Usually there will be bragging about permits that are being taken care of or permits that have been processed. In essence, if you have not obtained permission from a certain legal institution, it is better to avoid it.

What are the types of fraudulent investments?

Fraudulent investments are usually offered in several types, this type of investment will usually look very tempting at the beginning, the goal is of course to deceive. Well, here are some types or examples of fraudulent investments that are often encountered.

1. Fake gold investments

Gold investment is a type of long-term investment that is in great demand by the public. However, you should be careful with fraudulent investments under the guise of gold investment. The individuals from these fraudulent investment companies will offer large profits, on the condition that they deposit investment funds and then exchange them for a certain amount of gold. The gold offered can be in the form of gold bars or precious metals, gold jewelry, or even gold coins. However, in fact, the gold is fake and has no selling value. Individuals from this fraudulent investment will sell the gold at a very cheap price, so that the victim will buy in large quantities. Imagine how much the victim loses if he is caught in a fake gold investment. So, how to prevent it? Gold investment is promising, but make sure you buy it in a place that is official and guaranteed to be safe. You can buy gold bars or precious metals easily, quickly, and safely through the official Antam precious metals website. If you want to buy gold jewelry, make sure to buy it at a gold store that already has credibility and is already trusted. Because, there is a lot of fake gold that can be harmful. Therefore, always be careful if you want to invest in gold bars or gold jewelry.

2. Money games

Money games are also a type of fraudulent investment that occurs a lot. Money games or commonly known as ponzi schemes or pyramid schemes have been banned in Indonesia. Simply put, this money game offers profits that are multiplied from the capital spent. However, the real goal is to deceive. In the end, a business model like this won't last long. As an investor, you must be careful and smart in assessing any form of investment. Don't get tempted by the lure of big profits in a short time. Well, reporting from the OJK Investment Alert Task Force page, the characteristics of money games that are fraudulent investments and need to be watched out for, namely:
  • No products or services are sold. If there is, these products and services are sold at inappropriate prices. Everything is just a cover for his business.
  • Active bonuses are obtained from recruitment, or members get bonuses.
  • Passive bonuses are obtained from a percentage of the value of the investment invested.
  • Payouts of unreasonable profit bonus results.
  • Can have more than one account, or can join multiple times.
  • The company does not have the appropriate permit.
Money games are the most common and can offer promising benefits. You have to be careful not to be deceived.

3. High yield investment program

Basically, most fraudulent investments will offer very high returns, just like the High Yield Investment (HYIP) program. These fraudulent investments can offer promising businesses, such as technology-based businesses or coal businesses. Individuals from this fraudulent investment will usually say that the return on their business per month can be so high that they can break back in a short time or this investment offers too high a profit share. If you encounter an investor like this, then you must be suspicious because usually the numbers mentioned are not exact numbers. Almost similar to HYIP, fraudulent investments in the form of fake agribusiness investments also take quite a lot of victims. These fake agribusiness investors will look for victims who are willing to invest capital to manage an agribusiness land. Korban akan ditawarkan keuntungan yang besar dari hasil agribisnis tersebut. The victim will receive a land ownership letter, which is actually just fictitious. Those are some types of fraudulent investments that you should know. Of course, there will be more other types of fraudulent investments. So, don't want to be lured with big profits in a very short time.

Want an investment that you can manage yourself so that you don't get scammed by fraudulent investments?

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