Friday, January 10, 2014

How To Avoid Losing Money In Scams

Recently a close relative of mine was scammed away more than RM100k and I think I need to write this article to warn people about scams.

This can happen to anyone, whether or not you are educated and you have seen many times these things happened in the media, you may well be a victim of a scam. You've saved all your life and you've been investing wisely to accummulate your wealth, but one unlucky day you encounter a professional syndicated group of people who got hold of your emotional weakness and you may lose your life savings.

Internet Scams
The most common is through internet. It is reported that many scams are initiated through the Internet; victims range in age from 18 to 81 and come from all socio-economic backgrounds.
All types of advance-fee scams have one point in common – the targeted person is led to believe that he or she has a chance to attain something of very great personal value (financial reward, a romantic relationship, etc) in return for a small up-front monetary outlay.  As a general rule, if it sounds too good to be true, it probably is.

If you feel you have been a victim of an Internet scam, please consult the publications below for help and send all reports of Internet fraud directly to the Internet Crime Complaint Center.  If the scam originated through a particular website, notify also the administrators of that website.  When it becomes apparent you are the victim of a scam, it is best to end all communications with the scam artist, rather than attempt resolution.  It is extremely rare for victims to recover lost money.  If you feel threatened in any way, you should report your situation to the local police. 

Investment Scam
It is reported that every month, RM100million is lost to commercial crime in Malaysia. The most common investment scams are gold investmet ad forex. Mohamad, an airline clerk had lost RM52,000 in a forex scam; Another victim, Yusof (not the real name) had lost US$100,000 after investing in an online get-rich-quick scheme that promised  a “guaranteed” return of US$1million.

Any person or company who commits an offence under Section 25(1) of BAFIA 1989 shall, on conviction, be liable to a fine not exceeding RM10 million or to imprisonment for a term not exceeding 10 years or to both. Any person or company who commits an offence under Section 4(1) of AMLATFA 2001 shall on conviction, be liable to a fine not exceeding RM5 million or to imprisonment for a term not exceeding 5 years or to both.


Members of the public are advised to be cautious of investment schemes promoted on the internet, through phone calls or through seminars conducted by individuals or companies that are not licensed or authorized by Bank Negara Malaysia to accept deposits or to conduct foreign currency dealings. A list of all licensed institutions that accept deposits is available on Bank Negara Malaysia's website at www.bnm.gov.my.

While it is important to invest wisely to accummulate your wealth, it is even more important to prevent your money lost through scams.

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