I have just been introduced to a fantastic gold investment scheme, giving me 300% return in just 8 months.
If anyone or any companies offers you an investment scheme without a valid license under the Banking and Financial Institutions Act 1989 (BAFIA), this could amount to “illegal deposit taking” which is an offence in Malaysia. In practice, part of the money deposited by investors is used to pay the profits due to early investors. The operator continues paying these profits for a few months to lull investors into a false sense of security and to persuade investors to invest more. At some point in time, the scheme will vanish, typically at the point where a critical mass of capital has been achieved and the operators disappear with all the deposits collected from investors.
How to Protect Yourself?
- Remember the golden rule – if it sounds too good to be true, it’s probably a lie;
- Deal only with licensed financial institutions and authorised dealers;
- Check with the relevant authorities before investing/ depositing;