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Opinion

Monday, 19 June 2017 | MYT 12:00 AM

Authorities must be more vigilant against scams

IT cannot be denied that a large segment of society today is driven by materialism where the amount of wealth accumulated would typically denote one’s standing. As such, many would not hesitate to participate in investment schemes which offer quick and high returns even if they look dubious.

It is common knowledge that investment schemes in various forms have existed for a long time. But with advanced technology, they have become even more sophisticated and are also transcending borders. High returns on investment are often promised to entice willing parties, and it is unfortunate when these are retirees who use their retirement funds.

Of late, the media have been highlighting the collapse of elaborate investment schemes involving millions of ringgit in cash. Most of those who failed to get their investments back are people who put their money in when the particular scheme was ripe for collapse. Pioneer investors normally receive returns as promised as they are often used to recruit others.

Even if reports are lodged with the authorities, in many cases it would still be almost impossible to seek refunds as all cash would have been lost.

So who should the victims blame? In reality, they should bear responsibility for their own actions. We must always carry out due diligence before deciding to invest. Wouldn’t an investment scheme which promises 15% to 20% returns per month smell fishy?

Even after the Domestic Trade, Cooperatives and Consumerism Ministry (MDTCC) spearheaded efforts to educate consumers on the perils of investing in such schemes, it is unfortunate that new ones continue to sprout, and this is due to demand created by consumers.

While the Malaysia Consumers Movement (MCM) commends the MDTCC’s consumer education efforts, we would also urge Bank Negara Malaysia to do more as financial regulators to monitor unscrupulous investment schemes. There is a dire need to nip them in the bud!

To those looking to make a few bucks in investment schemes, please stay away from schemes that sound too good to be genuine.

DARSHAN SINGH DHILLON

President

Malaysia Consumers Movement