Beware of Investment Scams During Covid-19 Pandemic

Be smart and don’t fall for quick money schemes. It will eat you alive and haunt you forever

The Movement Control Order (MCO) or Conditional Movement Control Order (CMCO) provides a perfect situation for the public to fall into the trap of get-rick-quick investment schemes. People are trying to find the fastest way to get rich as most of them, due to losing their main source of income, are strapped for cash and desperate to earn money most quickly.

Investment scams are one kind of financial fraud. According to Bank Negara Malaysia, financial fraud can be defined as an illegal act involving complicated financial transactions. It falls under civil law violation and is usually conducted by business professionals with specific knowledge and with criminal purpose.

Investment Scams in Malaysia during Covid-19 Pandemic:

• Amanah Saham Nasional Berhad (ASNB) in a statement warn Malaysians to be cautious of a new scam that uses the ASNB logo in a circulated Whatsapp message. The sender guarantees great returns of investment within a short period.
• A hospital consultant at Pahang lost RM63,465 from his savings account when he shares his personal account information on a fake BNM website. He had been approached by men claiming to be from both Malaysian Anti-Corruption Commission (MACC) and the Royal Malaysian Police (PDRM), who instructed the victim to use the website as part of an investigation. Two days later, the victim later realized money was missing before lodging a police report.
•  BNM also warns the public that they do not select random people to beta test any app or system. They also advise Malaysians to not share any personal information including banking details, passwords, transaction authorisation code (TAC), and personal identification number (PIN).
• The Inland Revenue Board (LHDN) advises Malaysians to not fall for fake text messages sent from personal numbers claiming the receivers will receive Bantuan Prihatin Nasional (BPN). These scammers will ask for banking details with the promise of payment credited within 24 hours. Genuine messages will not ask for details, but will instead provide notifications to recipients.
• Employee Provident Fund (EPF) also warns Malaysians to not fall for a fake website, semakonline.com for the application to withdraw from their EPF Account 2. In a statement, EPF confirmed that the website is neither endorsed nor owned by EPF.

Overall

This pandemic period provides us with a lot of time to be at home and more access to internet connections and gadgets thus providing ample opportunities for scammers to lure their victims in. As an investor, we should always be cautious and ensure we have sufficient knowledge before investing. Do not easily fall to the professional-looking ads at the social media and consult a licensed financial planner to get advice on your investment decisions.

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Have you ever encountered investment scams during this period? Share with us in the comments section below.