5 Ways to Identify Ponzi Scheme or SCAM

There are various investment plans available in the market which provide good return, for example 10%, 20%, 30%, some even 50% PER ANNUM!

But how to identify the scheme or investment plan whether it is legit or viable?

1. Please refer to List of Alerted Companies : The companies under the alert list MIGHT NOT be a SCAM company, but as BNM's message "I've alerted you, please invest at your own risk. I hold no responsibility for any losses incurred by you"


2. Pyramid System / Money Game-like : All the Ponzi Schemes or SCAM will encourage their investors to recruit new investor and give them a BONUS or REFERRAL FEE for recruiting. Besides that, they also have the right to draw a certain percentage from their recruit's recruit, a multilevel/multi-tier benefit. So, check with the company background, are they in the Pyramid System or a Money Game. Or you can simply ask"How many levels or tiers I can get the benefit from my referrals if I invest?"


3. Get Rich Quick (GRQ) Scheme / Skim Cepat Kaya : Bear in mind, this world has no free lunch. If you invest in any investment plan that give you more than 30% a year, please be ready to accept the fact that you only have 30% chance to get back your hard earn money. Those who join earlier would benefited the most.


4. Source of Income : Many investment plans promise to give you a certain percentage rate of return BUT they cannot clearly explain and show you WHERE THE RETURN COMEs FROM.They will tend to use certain terms to blur and confuse you AND they not able to show you the FACTS.


5. Logic of Business Model : Nowadays investment plans in the market has various industry from agriculture to energy sector. You may consult the PROFESSIONAL in the particular industry of investment to understand the viability and the logic of the business model.

In a nutshell, investments do carry RISK. In an alternative investment, what matters most is our CAPITAL. Nothing more important than the investing capital! 

*An alternative investment is an investment in asset classes other than stocks, bonds, and cash.

Remember, the 5 items as mentioned above are the fundamentals to invest in alternative investment. 

Thank you for reading!