The look of today
Models are reflecting the reality of modern-day consumers.
IT appears that some of us can be sceptical about anything except the promise of great investment profits. Although these people automatically dismiss every official statement as spin or a lie, they are willing to believe that those with unproven abilities and fuzzy methods can extract strong and steady returns from unpredictable markets.
These cynics are likely to buy every conspiracy theory out there, yet they see no reason to stay away from “surefire” investment schemes.
What is more remarkable is that they are often instrumental in influencing family and friends to put money into these schemes, thinking that they are sharing valuable infor mation with their loved ones.
Malaysia has no shortage of investment ventures that offer unrealistically high and consistent gains. Most have turned out to be scams that were never built to last long.
These usually work on the basis that each new investor would bring in cash that would be used to pay the dividends or profits of the investors that had joined earlier.
The actual investment operations – if there were any – would never generate enough income to sustain regular payments to investors.
This illusion of successful investing relies heavily on getting people to join the schemes and on persuading existing members to keep investing. Eventually, the music stops and the party ends, but not without first claiming victims.
After some time, the pool of new investors dries up. Without the inflow of fresh funds, the schemes collapse. In many cases, the operators went missing and the investors, particularly the latecomers, became poorer and hopefully wiser.
The thing is, others do not seem to learn from these episodes.
The ongoing JJPTR saga tells us that people are willing to set aside caution as they cannot resist the idea of receiving the extraordinary 20% monthly returns from the troubled foreign exchange trading scheme.
The founder claimed that the scheme lost RM500mil after JJPTR accounts were hacked. He said he planned to repay new investors by midMay.
At this point, we do not know if the scheme has any element of fraud and whether it will resume, but there is zero comfort in the fact that three forex trading entities linked to JJPTR are on Bank Negara’s latest list of companies and websites that are not authorised or approved under the laws and regulations administered by the central bank.
Despite this financial consumer alert, many people saw no issue with investing in the JJPTR scheme. But they will be very anxious as they wait for signs that their money is safe.
In July last year, InspectorGeneral of Police Tan Sri Khalid Abu Bakar warned against getrichquick scams, saying that there “is no free lunch in the real world”.
“If it looks too good to be true, it probably is,” he added.
These are cliches because they have been used again and again and have lost their impact. But if more people begin to heed these words, perhaps we will hear them less. And that would be a good thing.
GEORGE TOWN: Investors of JJPTR are keeping silent out of fear they may lose their money.
They worry that the account of the company will be frozen by the authorities if police reports are made.
Some are also fearful that action will be taken against them for taking part in “illegal activities”, since JJPTR operates forex trading, which was neither authorised nor approved under the relevant laws and regulations administered by Bank Negara.
A 65-year-old clerk, who declined to be named, stressed that he did not consider lodging a police report against JJPTR as he hoped to get back the US$2,000 (RM8,743) that he invested.
“I invested US$1,000 and another US$1,000 under my wife’s name. After I received three payments, I failed to get my fourth returns.
“I was told that the boss is figuring out a way to pay us back. I trust him since I got my earlier dividend payments on time,” he said.
Another investor, Lau, said they do not want trouble, just their money back.
The 40-year-old who joined the scheme last year made a little profit but his two colleagues that he “recruited” did not.
“Both of them invested US$200 and US$1,000 early this month. They have not got back their money, and I feel that I have to help them,” he said when met outside the JJPTR service centre in Perak Road yesterday which opened at 1pm.
He said an employee there told him that investors who have not received their returns might be transferred to a new plan.
The investors appeared calm and they accepted the explanation given by staff at the service centre, believed to be the headquarters in Penang.
One of the 20 staff members stationed at the centre said the investors were told about the risk before they joined.
“Now, the company is facing a crisis and lodging police reports will not help,” a branch representative said yesterday.
Penang Commercial Crimes Investigation Department chief Asst Comm Abdul Ghani Ahmad said no reports against JJPTR had been received so far.