Before you tap ‘invest’, check if it’s a scam

Investing through digital tools can be convenient and cost-effective for many people. However, financial planner Bryan Zeng warns that ease of access does not guarantee safety. Zeng advises investors to ask key questions about their investments, such as what they are buying, who makes the investment decisions, and who holds their assets.

He emphasizes the importance of verifying the company and representative offering the investment, checking their authorisation through the Securities Commission Malaysia’s (SC) Investment Checker, and confirming the presence of their names on Bank Negara Malaysia’s (BNM) list of licensed entities. Zeng also suggests looking up the SC’s and BNM’s alert lists and the Royal Malaysia Police’s Semak Mule portal for any reports of scams related to the specific accounts involved.

While these checks can help identify potential risks, they are not foolproof. Zeng warns that scammers may still pose as legitimate firms through tactics such as impersonation, deepfake videos, and fraudulent advertisements. He advises investors to contact the company using a number obtained independently to verify the representative and their offer, and to confirm where their money is invested, as requests to transfer funds to individual accounts are potential red flags.

Scammers may also use deepfake videos to make their offers appear more credible, and may pressure victims to act quickly by promising extraordinary returns and creating a sense of urgency. Victims are often directed to private messaging apps like WhatsApp or Telegram, where conversations with "successful" investors share fabricated returns and photographs of cash.

Scammers then contact the potential victim privately to finalize the deal, often requiring a rapid investment decision. If a large sum is deposited, withdrawals may be blocked, and scammers may cut off communication to avoid detection. Even seeking help from legal services can lead to further scams if the firm is impersonating a legitimate lawyer.

Zeng advises immediate action if a scam is suspected: reporting any transfers to the bank’s fraud hotline, contacting the National Scam Response Centre at 997, and alerting the Securities Commission if investments are involved. Victims should gather all relevant information, including transfer receipts, account details, advertisements, chat histories, and contact information, and file a police report.

While investing may involve just a few taps on a phone, taking the time to verify an offer's legitimacy is crucial to avoid falling victim to a scam.