Southeast Asia, especially Malaysia, is plagued by investment package scams. Scammers use social media and false identities, making it difficult to catch them.

Scams involving investment packages are widespread throughout Southeast Asia, most recently in Malaysia. The majority of victims are inexperienced rookie investors. Social networking is a common interaction point for scammers. Fraudsters hide behind false identities, making it difficult to catch them. And trying to get the money that was stolen is even harder.

How do conmen operate?

To find victims, scammers first post investment adverts on social media sites like Instagram.

After contacting the con artists about the advertisement, victims will be requested to join a chat group. The club has between 300 and 1,000 members, but most of them are scammers. Fraudsters use screenshots of profits or group cash to convince victims to invest.

The con artist will pose as an employee of the investment company when the victim visits to inquire about the investment and will suggest a bundled investment plan (Investment Package).

The plan’s modest investment, no trading experience, and trader-on-demand are appealing. In conclusion, the investor can generate income simply by making deposits.

Real investment, however, is never this simple.

The victim doesn’t learn that the profit has arrived for a few days or hours, and the profit rate is astronomically high! Individuals can frequently “earn” hundreds or even tens of thousands of ringgit in earnings after investing just a few hundred ringgit.

Whether investors withdraw or trade, the firm will now charge fees for various reasons. Scammers also justify commissions with excessive trading fees and account feature activation fees. Some con artists pose as police officers or attorneys and say the victim’s account is suspected of illegal activity and needs to be investigated. Account owners who don’t pay “attorney’s fees” or “security” can be detained or taken to court.

Notwithstanding the scam artists’ explanations, the business will keep collecting payments and raising the amount until the victim can’t pay.

After receiving the first fee payment letter, some victims will recognize the scam and stop it, but others may not until multiple payments are made. The con artist will also abandon some victims who cannot pay.

How can I avoid falling for this scam?

Do not be too quick to believe in high returns or profits.

Ensure that local financial investing entities abide by all applicable laws by checking their regulatory standing; to minimize risks, select a regulated broker.

Before choosing an investment, be sure you have a thorough understanding of the markets and instruments you wish to use.

Scams involving investment packages
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