Are You The Next Victim?

Are you an easy prey for investment scams? Take this quiz to check your vulnerability.
1. You always associate investments with:
100% profits
Guaranteed returns with no risks
Doubling your money in no time!
None of the above
   
2. Which of the following statements BEST describe your investment philosophy?
I will invest only in an investment that gives high returns with no risk
I will invest in an investment that matches my risk tolerance
I will invest in an investment that can double my money in no time
I will invest in an investment that is highly recommended by close friends
   
3. You have been offered a job as a trading executive in a foreign commodity broking firm. The job requires you to get as many clients as possible to trade in a red bean futures contract in Macau. You were told that the investment yields high returns in a short time. Your clients will have to deposit $3,000 as a margin deposit at your firm. Your commission will be based on the amount of money your clients deposit in the firm. What is your next course of action?
Start looking for friends and family members to become your clients
Check with the regulators immediately whether the firm is licensed to trade in red bean futures in Macau
Try to invest in the red bean futures contract yourself to test your luck
Find out more information about the investment from your friends who are working in the same firm
   
4. How do you verify whether a unit trust agent is authorised to promote/sell unit trusts?
Request for his call card
Request for his authorisation card issued by the Federation of Malaysian Unit Trust Managers
Not necessary to verify as any person can promote or sell unit trust products
Check for an authorisation letter from the unit trust company
   
5. Your unit trust agent asks you to give cash to him so that he could buy unit trusts on your behalf. Do you?
Give him the cash
Give him the cash and request the agent to issue a receipt immediately
Pay him with a cheque in his name
Refuse to give him any cash
   
6. If you want to check a stockbroker’s licensing status, which of the following websites would be your source for the required information?
www.thestockbroker.com.my
www.sc.com.my
www.licensedcompany.com.my
www.licensedbrokers.com.my
   
7. A close friend persuades you to invest in an exclusive offshore investment scheme that guarantees 200% return and tax-free. Do you?
Agree to make the investment because you trust your close friend implicitly
Request for written materials on the investment and invest once you have read them
Check with the regulators to see if they have any information on the investment scheme
Agree to invest only if your friend could show the advertisements or news on the investment scheme in the media or the Internet
   
8. To protect yourself from investment scams, which of the following measure(s) would you adopt?
Read and understand the investment prospectus and annual reports
Seek advice from licensed financial professionals
Be skeptical and ask a lot of questions about the investment
All of the above
   
9. You will invest in an investment scheme if:
The promotional materials and company website look professional and impressive
The company’s office is at prestigious address and its name sounds official
The company’s personnel wear expensive swanky suits and drive snazzy cars
None of the above
   
10. If you fall victim to an investment scam, would you?
Do nothing and keep quiet
Blame it on your bad luck
Lodge a report/complaint with the relevant authorities immediately
Pay an unknown person who claims that he can guarantee the full recovery of the money you have lost
   

Once you are done with the quiz, click here to view the reasons behind the answer