Tips to Avoid Investment Fraud that Occur
Investment is an activity commonly carried out by fund owners to obtain profits in the future. There are many forms of investment that can be done, ranging from small, medium to high risk. The investment period varies, there are those who choose short, medium and long term. All depends on the purpose of the fund owner.
In Indonesia alone, the longer there are more and more fund owners, that’s a good thing. But unfortunately, not all of the fund owners are familiar with the world of investment, so this is very easy to use badly by irresponsible parties. And this is where it will be an investment fraud, the false investment investment.
Worse yet, from the past until now the incidence of investment fraud can occur at any time, this shows the low investment information held by the owners of funds. Well, are you also the owner of the fund who wants to invest? If yes, and still feel unfamiliar with the world of investment, then you should learn more about it.
Get to know the field of investment
There are two forms of investment that are most commonly carried out by fund owners. First, investment in the party that conducts business activities directly, second is investment in the Investment Manager company, where the investment manager will later channel investment funds collected to various sectors.
Investment fraud occurs in the form of an investment manager, to fraudster usually collects funds from many capital owners. For reasons of distributing various types of investments, it could be stocks, plantations, livestock, and so on
To make early detection of investment fraud, I suggest you at least have insight into the investment that you will do. The first thing is of course you need to recognize the fields that you will enter, for example you are invited by people to invest in plantation businesses. So recognize how the plantation business is run, how the potential benefits, what are the risks, and various other things. If the information you get is too different from the one explained, you should be cautious because it could be fraud.
Always Remember the Basic Principles of Investment
The principle of an investment is the greater the potential profit, the greater the risk of loss with the appropriate time, and vice versa. You will certainly be tempted if someone offers you an investment where the potential profit is very high and the risk is very fast, this is not in accordance with the principle of investment. And this is the lure that is often given by fraudsters.
Until now I do not know what the investment will be, but if the time is too short, if the time is too long, years or even less, I will never believe it.
Let’s just look at a number of investments, for example stocks with huge profit potential in a short time, but stock investment has a very large risk. In the investment world there is the term “you can get rich overnight, but you can also be poor overnight using stock investments”. Different from mutual funds, this investment is known to be very minimal risk, but the potential profits are also large, the time needed to significantly increase the value of mutual funds is quite long.
Other than property investment, in my opinion property has a small risk and big profits, but this can not be done in a short time, if only 1-5 years the value of investment will not be too “wow”, it will take at least 10-20 year to obtain a significant increase in value.
So will you still be tempted by the lure of those immoral fraudsters? You should not, hold on to your passions, and be patient in seeking profit!
Beware If There Are Fund Locking Methods
Before you decide to channel funds to an investment, first know if there is a lockout of funds made. Locking these funds is a way of fraudsters so that the funds that have been channeled can not be taken back, usually with difficult reasons and conditions. Therefore, the locking of these funds is difficult to see because fraudsters may not overtly say that funds can not be taken back, but with difficult conditions for taking.
Examples of the complicated conditions such as the withdrawal time of old funds are not reasonable, very long. This mode can give them plenty of time to collect more funds from other owners, and run away from the responsibility of carrying away your money before the pick-up time arrives. Of course these fraudsters will not allow the collected funds to return to their owners, so if someone intends to take money, they will look for excuses and buy as much time as possible.
Unlike the Investment Manager who is legal and proven not to be a fraud, even though the withdrawal of funds is also difficult, it is still possible to take it back. For example, time may be too long but it is still natural for administrative processes and the like.
Companies Must Be Clear
Who are you invited to invest in? Whether it’s a company or an individual, you should check it out to avoid investment fraud. There are a number of things you can check to make sure, including:
Clear legal status
Companies must have clear laws, whether they are legal entities of PT, CV, or individuals, what clear is that you need certainty about their legal status. If necessary, you can consult a legal expert to make sure, for example, to notaries or relatives who understand correctly about business law.
Legal status is not enough, you need to pay attention to the operating permit of the company. For example, an investment manager whose operations collect funds from the public, then the investment manager should have a permit from OJK (Financial Services Authority), if there is no permit, it can be ascertained to be illegal.
Different if you invest in direct business such as the cooperative sector, then there should be a permit from the Ministry of Cooperatives and SMEs. If it’s a trading business, then there must be a permit from the Ministry of Trade. If it’s an MLM business, there should be permission from BKPM (Investment Coordinating Board). So, make sure there is permission from the authorities for each type of business investment.
Another thing that can be an indication of fraud is if the address is fake. Usually fraudsters give unclear addresses to branches of their offices, factories or the like. They claimed to have it all, but gave a fake address. Critical! There is no harm in checking directly if they claim to have a branch, for example, a factory, or another warehouse.
Clear structure and management
A good company certainly has a good organizational structure and management. If you find they do not have it or are messy and unclear, this could be fraud.
Clear reports and business activities
Whatever your recognition, for example, having a culinary business or other business, it is your duty to check directly on the activity. And certainly, every reasonable business activity has a report, it can be a report in the form of cash notes, notes, or even financial statements. Ask for such reports to them, if there are none then this could be a bogus investment.
Firm to reject it
If you have found an indication of a bogus investment, you need to reject it firmly. Do not get too lust just because of the big profits. There are still many investments out there that are more trusted. And also, do not use too much heart even though they are very kind or considerate to you, know that it is one of the seduction strategies they do.
Whether the person is very good, caring or even your own relatives, but if you have found many indications of fraud, my advice is to always be firm in rejecting it. Do not soften because they will definitely use you more and more later.