We’ve got an eye-opening story that highlights the dangers of online investment scams. A retiree recently lost nearly RM5 million to a scam that started with a Facebook ad. Here’s how it happened and what you can do to protect yourself.
The Story:
A retiree responded to a Facebook advertisement that promised high returns on investments. The scammers convinced the victim to open an investment account and showed impressive profits. However, when the retiree tried to withdraw the money, it had disappeared.
How Scammers Operate:
- Social Media Ads: Scammers use platforms like Facebook and Telegram to post ads that promise high returns.
- Fake Investment Accounts: They create accounts that display fake profits to lure victims into investing more money.
- High-Pressure Tactics: Scammers use words like ‘lucrative’, ‘instant returns’, and ‘guaranteed returns’ to create a sense of urgency and fear.
Why Scams Still Happen:
Despite efforts from the Securities Commission to raise awareness through workshops, public announcements, and social media, scams still occur. Scammers are always finding new ways to deceive people, often targeting those in financial distress.
Types of Scam:
- Investment Scam: Scammers promise high returns and create fake accounts to steal money.
- Social Engineering: Using manipulation and fear tactics to rush victims into making decisions.
How to Protect Yourself:
- Be Skeptical: If it sounds too good to be true, it probably is. Be wary of promises of high, guaranteed returns.
- Verify and Research: Always check the legitimacy of the investment with financial authorities and do thorough research before investing.
- Don’t Rush: Take your time to evaluate the investment. Never let anyone pressure you into making quick decisions.
Regulator-Validated Practices:
- Check with Authorities: Contact the Securities Commission to verify the legitimacy of any investment offer.
- Increase Financial Literacy: Understanding basic investment principles, such as the risk-return tradeoff, can help you avoid scams.
Personal Touch: Imagine thinking you’ve found the perfect investment, only to discover it’s a scam. It’s not just a financial loss; it’s a betrayal of trust. By staying informed and vigilant, we can protect ourselves from these deceptive schemes.
Stay sharp, Scamstallers, and let’s keep each other safe from these crafty scammers!
Original Post by: Assistant Professor Dr. Nurwahida Mohd Yaakub, CFP CERT TM, School of Social Sciences, Heriot-Watt University Malaysia, find original article here