Easy pickings for get-rich scammers
PUTRAJAYA: More people are likely to end up becoming victims of “get-rich-quick” scams due to poor financial literacy, according to the Second Finance Minister.
Saying that the reported cases may just be the “tip of the iceberg”, Datuk Seri Johari Abdul Ghani cited the JJ Poor to Rich (JJPTR) case as an example where investors were duped of over RM500mil.
“I am certain that there are many more getrich-quick scams which have gone unreported,” he told reporters after launching a Fiesta Labur PNB 2017 event here yesterday.
Johari said poor financial knowledge was among the factors why Malaysians, mainly the elderly, ended up losing their lifesavings to such scams.
“Many are duped into investing with promises of high monthly returns of between 10% and 20% but end up losing their savings.
“If it is too good to be true, it is usually not,” he said, advising those who wanted to invest to check with Bank Negara on the validity of the investment schemes.
A Bank Negara 2015 report showed that only 43% of 3,000 respondents surveyed were aware of investment risks and returns.
According to some estimates, there are as many as 400 active dubious schemes being marketed in Malaysia.
On Aug 3, police arrested a Datuk Seri and Datuk believed to be masterminds of a getrich-quick investment scam.
Some 200 investors were promised investors a return of 1% a day or 30% a month.
The two men, aged 45 and 40, were arrested during raids at Desa Park City, Kuala Lumpur. Police seized 17 luxury watches, 35 designer bags, 16 silver bars and two luxury cars estimated to be worth RM1.05mil.