What is an Investment scam?
A fake investment opportunity is presented by individuals who claim to represent legitimate organisations, authorities or a “friend”, offering quick, attractive and easy returns with limited time deals. Many investment scams also involve sophisticated websites that operate bogus trading platforms to trick victims into “investing”, and false endorsements that capitalise on public figures and celebrities to spread disinformation and false endorsement of products. When things seem too good to be true, they usually are. Learn to spot the signs to avoid falling prey.
Scenario 1: Unsolicited approaches
Scammers get in touch with victims through social media, messaging platforms or dating applications and build a connection with them over time to gain their trust before presenting the fake investment opportunity. In some cases, the scammers may offer to trade on behalf of the victim or share details of a bogus trading platform for victims to perform their own “trades”. Victims are led to believe that the “investment” is genuine when they receive modest returns and would be convinced to continue “investing” more.
Scenario 2: Online advertisements
Scammers may post investment advertisements on social media platforms. To enhance the scheme’s credibility, these advertisements often include false endorsements. Targets who respond to the advertisements are directed to communication applications to contact the scammers, where they would be guided to register for an account with their personal particulars on a bogus trading platform or application. These fake platforms are designed to resemble legitimate investment sites, featuring professional-looking financial dashboards displaying “profits”. Believing that the “investment” is genuine, victims continue to invest larger sums, and the scammers would no longer be contactable.
How do I spot the signs?
Scammers usually promise high returns and use pressure tactics. Be wary of:
– Investment returns that are unreasonably high with little or no risk
– Being pressured to make quick decisions to invest because of a time-limited opportunity
– Bogus trading platforms designed to resemble legitimate investment sites
– Unfamiliar financial entities based outside of Singapore
How do I stay safe?
Tip #1:
Invest cautiously – Check with a licensed financial advisor before making any investments. Refer to the Monetary Authority of Singapore (MAS) Register of Representatives to ensure you are engaging with an appointed representative of a legitimate Financial Institution who has been notified to MAS. Contact the Financial Institution the representative is claiming to be from to verify. Request to meet or ask for video calls.
Tip #2:
Check if an entity is blacklisted on the Monetary Authority of Singapore (MAS) Investor Alert List. Deal with companies that are licensed and regulated by MAS. Be careful when dealing with unregulated entities. If an entity is based outside of Singapore, check that it is regulated with the respective overseas authorities.
Tip #3:
All investments carry risks. Always research and perform a thorough check before investing.
Tip #4:
Understand what you are buying and never take up unsolicited offers of investments without careful consideration. Keep up to date with the latest investment scams.
Anyone and everyone can ACT against scams.
– Add ScamShield app and security features
– Check for scam signs
– Tell authorities, friends and family
Stay vigilant. If it sounds too good to be true, it usually is.
Click here to learn more about how you can ACT against scams.
