Be Cautious with Investment Fraud

May 17, 2017



This year mark OJK alert for the public to be cautious with investment fraud.  According to OJK press release, their Investment Alert Task Force has received many complaints from the public and found some investment offers on the internet or online media that could hurt the public financially. To provide ongoing protection to the public, on April 18, 2017, the Task Force suspended the business activities of seven entities as they did not have any permit to run their operation and had also given false and misleading information.

While, for the first four months of 2017, the Investment Alert Task Force has suspended 26 entities that allegedly offered illegal investment products. 

Further, the Task Force recommends the public to take the following precautions before investing their money. Below are some of the advises that you should follow to prevent you from investment fraud:

  • Make sure the companies that offer investment products have business licenses from the competent authorities and the licenses are relevant to their business activities.
  • Make sure the parties who offer investment products have permits to do so or they are registered as marketing partners.
  • Make sure the companies or the parties that offer the investments also have business domiciles that comply with their licenses.
  • Make sure that any logo of government agency or institution, which is found in the materials that describe their offerings, has been listed there in compliance with provisions of the legislation. 

There is no fool-proof strategy to avoid investor fraud, but there are a number of approaches you can take to minimize the risk of an outside manager using your hard-earned funds improperly. Taking these several tips into consideration is a good step in protecting yourself and your investments.