How to spot Scams and other Shenanigans
We work hard so that we can earn enough to live a better life. Our lifetime savings are the ones that can carry us to the end of our lives. If we are fortunate enough to earn a good fortune, that will allow us to upgrade our lifestyle and live better. But then… in come scams, whose sole purpose is to rob these hard earned money using underhand methods.
Ever since the COVID-19 pandemic hit the world, scammers have ramped up their activities and more are surfacing. Some articles of late:
- Woman loses almost RM700k in phone scam
- ASNB warns public of WhatsApp scam investment package
- Public Bank cautions against loan scams as Malaysians seek financial lifeline
It is so disheartening to see these happening. These scammers take advantage of people’s vulnerabilities (be it out of kindness, fear, insecurity or greed) and cause mayhem to the victim’s world.
My Recent Scammer Experience
I’ve gotten a few experiences myself, one of which is a bot that says its calling from some court about summons. It is usually a good idea to hang up if you hear a bot call you.
The most recent one was just this last weekend and it went like this:
This message immediately raised an eyebrow and the scam-danger bells started ringing ferociously. The 6-digit code did indeed come via SMS. I have quickly reported and blocked the number.
I believe there are people who would fall prey to these kind of tricks. Scammers have even started to disguise as the victims’ friend to scam them (by hacking one account and contacting the friend list). That’s why it is important to be cautious even when conversing with a friend over any texting mediums nowadays.
Things to look out for
Here are a few things that we should watch out for:
- Never share OTP/TAC or any verification code that gets sent to your phone via SMS. The code is ONLY for you. There is no one else who should get hold of these verification codes, including the “company” itself. Like my example above, if they ask you for it, it’s a SCAM.
- If a bank (or any other companies for that matter) calls you, remember that they have all your details that they need and will NEVER ask you verification questions (e.g. IC number, bank details, address, etc). If they call you and ask you verification questions, it’s veri-SCAM.
- Any calls you receive and a bot is talking… it’s a robo-SCAM.
- Anyone you don’t know asking you to transfer money for whatever reason, it’s a SCAM. Actually, even if it’s a friend, you might want to treat it as a scam too…
Take note that if you receive any such requests from a friend even on WhatsApp or Facebook, you should probably call that friend of yours to verify.
iMoney has detailed 7 common money scams in Malaysia for your further reading if you’re interested.
How about investment scams?
Whilst the other scams prey on the fear and insecurity (and sometimes kindness) of the victims, investment scams prey on the greed.
The telltale signs of an investment scam are:
- Guaranteed returns: There is no such thing as guaranteed returns for investments. Even if you put your money in the bank, it is not entirely guaranteed. Although rare, banks can default on paying you if they are in a crisis and PIDM protects up to RM250k only. The moment I hear guaranteed return, I guarantee it is a scam.
- Super high returns: If you hear about returns that seems stellar and sky high, step back and gauge the realistic views on it. Ask more questions. A lot of investment scams are tied to high returns to attract victims. How high is high? A quick rule of thumb is to pay close attention to anything above 30% yearly returns. Hedge fund managers historically achieved a high of 20% – 30% and they are professional investors who actively trade (refer here).
- Unlicensed platforms: Securities Commission of Malaysia (SC) is the governing authority on a lot of investment vehicles. So if you can’t find the platform on SC’s approved list (Platforms, Licensed, Unit Trust Funds) then you should be cautious. If you see the platform in SC’s blacklist, then steer clear of it!
- Understand it: If you don’t understand what you’re investing in, then you shouldn’t be investing in it. If you don’t know how the investment is making money for you, then you shouldn’t be investing in it too.
- MLM + Investment = Money Game/Scam: My opinion anyway. I’ll stay clear of these kind of network marketing businesses that is about investments. FYI, I support genuine network marketing businesses / MLMs, as shared in my experience in this post.
The investment scammers aim to profit from the pressure that modern society has on people. It is often times insufficient to become well off by just relying on the salaryman job, on top of the rising cost of living and diminishing salaries. So it is understandable that society is craving for any avenues that can make quick money or with little to no effort.
This is where the scammers have the opportunity to enter and give all the empty promises. As I heard someone once said, “Forget about getting rich QUICK and focus on getting rich RIGHT.”
Avoid Scams (as a perpetrator or a victim)
We work hard for our money and it takes a lot of effort to accumulate and save up the wealth, let’s not lose it all to scams.
Be safe and always be cautious when it revolves around divulging personal information or money related matters.
Stay vigilant and ask around when in doubt, including search engines.
Somewhere deep down, I hope one day the world will be free of scams so that people everywhere can make an honest living without worries.
