Are You The Next Victim?

Answers:

1. d

If you associate investment with 100% profits, guaranteed returns and doubling your money, you are more susceptible to investment scams. Most investment scams promise high returns with no corresponding risks to entice people to invest in it.

2. b

Your investment choices should match your risk tolerance. If you are a risk-adverse person, make sure you invest in a low-risk investment scheme. To find out about the risks of each investment products, contact your remisier or licensed financial professionals.

3. b

Always check with the regulators e.g. Securities Commission or Bank Negara; to verify if a company has been issued a licence and has been allowed to offer or market investment products to the public.

4. b

The Federation of Malaysian Unit Trust Managers (FMUTM) is responsible for registering all persons who want to market and distribute unit trusts. When dealing with such agents, you should request for his “Authorisation Card” issued by the FMUTM. For more information on agents, visit FMUTM’s website as www.fmutm.com.my

5. d

Never ever give cash to your unit trust agent. Always issue a cheque to the trustee or to an authorised person as specified in the prospectus. That is why reading the prospectus before investing is important.

6. b

For a quick check on whether a company has been licensed or authorised to conduct or offer investment activities, log on to the Securities Commission website at www.sc.com.my or call the SC’s Licensing Department at 03-62048000.

7. c

Beware of investment companies that offer high yield investments and operate from offshore locations such Bahamas, Macau, British Virgin Island or any other exotic offshore locations. Scammers love to use these international locations to boost their credibility.

8. d

Before investing, do some research and ensure that you understand what you are buying. Go through the investment scheme annual reports and prospectuses and seek assistance from your remisier or licensed financial professionals to fully understand the information disclosed in these documents. Contact the Securities Commission to verify if the company has been licensed or authorised to offer such investment schemes.

9. d

A company may have an official sounding name with a prestigious office at a premier location, complete with a professional looking website, but that does not mean that it is legitimate. Always check with the Securities Commission first.

10. c

If you come across or become a victim of an investment scam, lodge a complaint with the Securities Commission (Complaints Department: (603-6204 8999).

To learn how to identify investment scams, read the article on “How To Spot Scams”.