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Promoters hype their high-level financial connections; the fact that they're
privy to inside information; that they'll guarantee the investment; or that
they'll buy it back. To close the deal, they often serve up phony
statistics, misrepresent the significance of a current event, or stress the
unique quality of their offering. And they'll almost always try to rush you
into a decision.
The Catch:
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Many unsolicited schemes are
a good investment for the promoters, but not for participants. Promoters of
fraudulent investments operate a particular scam for a short time, close
down before they can be detected, and quickly spend the money they take in.
Often, they reopen under another name, selling another investment scam. Your Safety Net:
Take your time in evaluating the legitimacy of an offer: The higher the
promised return, the higher the risk. Don't let a promoter pressure you into
committing to an investment before you are certain it's legitimate. Discuss
with someone sound in investment or report it to Bank Negara Malaysia
(Central Bank of Malaysia). |
