Investment Scam

Fraudsters claim to be a financial adviser or portfolio manager and offers investments scheme with high returns and little risk to investors.

Type of Investment Scam:

  • Pyramid Scam - Fraudsters promise high rate of return with small investment within a short time period. In fact, investors make money by getting new members joining the program.
  • Ponzi Scam - Fraudster collect fund from new investors and use it to pay earlier-stage investors. Unlike pyramid scam, investors do not need to recruit new members in order to get the profit.
  • Advance Fee Fraud  - Fraudsters promise investors a large sum of money, stock, or warrants in return for a small up-front payment.
  • Forex Scam - A trading scheme used to defraud investors by promising them a high profit by trading in foreign exchange market.
  • Offshore Investment Scam - Fraudsters lure investors to move money out of the country. The company that you send your money to could be a shell company used to commit fraud . Once the money is moved to the offshore company, fraudsters will deposit it somewhere else.
  • Investment scams on Social Media – Fraudsters setup a cloned company that fraudulently impersonate a legitimate or a licensed entity and advertise their fraudulent investment scheme via social media and messaging app such as Telegram and Whatapps. These fraudulent investment schemes often offer high guarantee returns in a short period, usually accompanied by fake testimonials. Investors are instructed to deposit their investment fund into personal bank accounts of individual who claimed to represent the investment company.



How to spot investment scam?

  • High return within a short time period and accompanied by fake testimonials.
  • Low risk and guaranteed return.
  • Pressure you to invest right away or on the spot.
  • Investment that could not be verified through information that is available in the public domain or relevant authority.
  • Recommendation of foreign or offshore investment from unfamiliar person.  
  • Luxury free gifts given and instant cash deposit as sign up bonuses.