Source: Media Outreach
KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 19 September 2024 – In the last few years, financial scams and fraud have been rampant across various sectors in Southeast Asia. Traders and investors, in particular, are being exposed to financial malpractices like never before. Kar Yong Ang, a financial analyst from Octa, a global broker with extensive experience in the financial markets, offers some actionable tips that can help traders avoid scams and fraud.
This August, about 400 Malaysian investors lost roughly 100 million RM collectively to a supposed investment scam scheme. Victims started putting their funds in the scheme as early as 2016 through a site posing as a legitimate investment platform and even received due payments until 2022. However, following 2022, they received no more revenue on their investments, with the alleged operators giving various excuses.
Victims were promised profits on their investments, and some even signed contracts specifying monthly returns. However, they lost control over or access to their funds after transferring their capital. It is worth noting that scammers used fake e-brokerage licenses to gain the victims’ trust.
This case reflects a broad trend: cybercrime in general and financial scams and fraud in particular are on the rise both worldwide and in Southeast Asia. Given that, both seasoned and aspiring investors and traders should look out for potential signs of scams and fraud and do everything they can to protect themselves from malefactors.
Below are some of the most popular schemes targeting traders.
Malefactors can promise high profits without risk, paying early investors the returns from new investors’ contributions. The scheme starts to collapse when the number of new investors exceeds that of existing ones.
Recommendations: avoid offers containing unrealistic promises. Opt for brokers that have been on the market for many years and provide transparent deposit and withdrawal procedures.
3. Fake trading platforms
Recommendations: when you see the broker’s logo online, double-check the domain name. You can use the broker’s domain-checker extension to identify the authenticity of its local page. Always assume that fraudsters will be using some version of the brand name to try and trick you. Check the authenticity of brokers’ social media pages: their legitimate accounts are usually listed on their official website. Unfortunately, multiple copycats appear daily, so it’s important to stay vigilant, especially when engaging with Telegram and Facebook groups.
Recommendations: when receiving any communication allegedly coming from your broker, it is always a safe bet to reach them through the contact details specified on their site and continue the dialogue through this channel. Also, be sure to trade with an experienced broker that ensures high security standards through strict know-your-customer procedures and efficient customer support.
Recommendations: beware of unrealistic promises and try to check the official special media pages of the celebrities in question before making any hasty decisions. Refrain from sharing your personal information and research the company that is allegedly collaborating with the celebrity. You may also want to contact the company, asking them to verify the endorsement.
While the variety of tactics used by fraudsters in the financial sector constantly grows, there are solid and time-proven methods that will help you significantly reduce the risk, if not render yourself immune to it. By applying the approaches listed in this article, you will be able to become more aware of the malefactors’ arsenal and avoid many of their tricks altogether.
Hashtag: #Octa
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– Published and distributed with permission of Media-Outreach.com.
