Amran had just returned from Australia as a graduate in business administration and saw an advertisement on recruiting administrative executives. There was a promise of a four-figure salary, among other lucrative benefits, and Amran put in an application.

Two weeks later, Amran was delighted to receive a phone call asking him to attend an interview. "I need new clothes to attend this interview," Amran said and rushed off to buy a new suit, shirt and tie. He was really glad he did, as on the day of interview, he was greatly impressed by the office and the interviewers who were professional in their conduct, and formal in their dressing.

It was with great happiness that Amran announced to his family that he had been offered a job and that he would be sent for two week's training before starting his job proper. During the training, Amran was made to understand even more that his employing company was an international spot commodity and index trading firm, acting as agents for foreign trading houses, incorporated in Hong Kong. The company traded products in foreign markets and showed records of great successes.

At the end of the training, Amran, along with other executives were told that as an additional benefit to the staff, the company would allow an investment of between US$3,000 to 5,000 from each employee. An agreement would be signed with the foreign principal and it all looked legal and professionally managed.

Looking around, Amran saw staff trading the Hang Seng- index during the day time, and others trading US stock and commodities during the night. Believing the company to offer such a deal to its employees for their personal benefit, Amran borrowed money from his parents to invest.

At first, there were signs of making good profits in his account, so Amran felt comfortable to leave his investments there. But soon, the trading transactions started losing money, and before he knew it, Amran's money was depleted and he was asked to top up with more money. When he refused, he was fired from his job. All within a month, and he had not even received his first salary!

Beware of Scams

The above story is fictitious but similar scams have been surfacing in Malaysia and the Securities Commission has taken action against several such firms. These companies trade futures without a licence, and disguise their operations by shifting their activities from spot commodities trading to indices trading, such as the Hang Seng index, the Dow Jones Islamic Market Index, and other foreign capital market indices.

To read more about such bogus scams, click here.

Remember to deal only with traders who are licensed by the Securities Commission. A list of licensed companies are available on the SC website,www.sc.com.my.