| The Internet is an excellent source of information and an efficient tool of commerce. One of its most important features is that it allows individuals to perform financial transactions from paying bills to making investments. Since money can be transacted through the Internet, unlicensed people and crooks have established websites offering numerous services, from investment advice to investment products, to lure unsuspecting investors.
The challenge for investors is to distinguish between real websites offering genuine investment products from those that are fraudulent. It is not an easy task. However, to help investors, the SC has highlighted some features of questionable websites to look out for.
Common features of websites providing investment advice/services illegally that have been shut down by the SC
- These websites may offer “exotic” investment schemes (claimed to give high return with low risk) and use “posh office addresses”.
- Proprietors, who claim themselves to be “investment experts”, would highlight the “excellent track record” of the company and also include testimonials from “clients” to convince investors. Identity of the proprietor is usually not available for verification.
- There is no reference to any licence for their activities of providing investment services and products. Some may claim that their activities do not require a licence.
- Recommendations to buy/sell certain stocks and “advice/tips” are delivered to clients via e-mail, short messaging service (SMS), access to password-protected webpage or one-to-one or group meetings.
- The proprietors may also advertise their services through indiscriminate use of e-mail messages and messages posted on various bulletin boards and Internet discussion sites.
- Websites are professionally designed to resemble a legitimate business and may be equipped with real-time stock prices, market commentary, market news and links to other financial websites.
- Some of these websites may include free services, such as basic tutorial about the capital market, e-books and access to chatroom/bulletin board.
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Source: SC press release, 28 February 2005 The SC has also identified a number of questionable websites which were shutdown:
#1: www.Remisier.com
This website claims to offer online trading services for stocks listed on Bursa Malaysia and portfolio management for individuals.
#2: www.32505.com
The website claims to offer buy/sell recommendation on specific stocks and investment advice and tips via SMS.
#3: www.tianping2u.com
The website claims to offer market direction , investment advice and tips via password-protected web page, e-mail and meeting.
#4: www.angelfire.com/journal2/danamodal
The website claims to offer investment advice and tips via a password-protected web page and e-mail.
#5: www.myshare2u.com
The website claims to offer buy/sell recommendation on specific stocks, and investment advice and tips via SMS. |
There are still numerous questionable websites that may still be operating and waiting for its next unsuspecting investor. Even though the SC will continue to monitor the Internet and issue warnings and alerts, the investing public can also chip in by alerting the SC if they come across any suspicious websites, e-mails or information on the Internet offering investment advice or services. For this purpose, the SC has established a dedicated e-mail: NetWatch@seccom.com.my for investors to make quick contact.
In addition, bear in mind that anyone who wants to offer investment advice or services to any Malaysian, even through the Internet, must be licensed by the SC . Therefore, always verify the licensing status of anyone offering you investment services or advice with the SC Licensing Department. |
