There is always risk involved in any investment decision. High return opportunities will be accompanied by high risk as well. Despite this, there are still many novice investors who expect risk-free returns, making them the target of investment scammers.
Investments that offer huge profits in a short period of time then emerged and become attractive. However, behind the tantalizing offers, the threat of investment scam is ready to trap anyone who is less vigilant.
Characteristics of Investment Scam
Don't be easily lulled by investment scam that solely promise profits without education about potential losses. Here are some characteristics of investment scam that investors should avoid.
Investment products promise a fixed return or income which is fantastic value and will not be affected by the risk of market movements.
Investments are offered through direct marketing or chain businesses (ponzi schemes or multi-level marketing alike).
Collected capital is placed in more than one financial instrument or real sector without segregated accounts so that it can be used arbitrarily.
Investments in deposits that resemble banking products or other securities issued in the name of a company illegally.
Investment programs or products are offered with a religious background, usually online, to attract investors.
Tips for Avoiding Investment Scam
After recognizing the characteristics of investment scam, it is important for investors to know how to avoid them. Here are some tips to protect yourself from fraudulent investments.
Understand that the bigger the profit, the bigger the risk of loss.
Find out information about the background, products or services, and employees of the company you are investing in. Avoid investment promoters who cannot explain the company's business plan.
Invest in companies that are officially listed on the Indonesia Stock Exchange (IDX). A listed company must comply with OJK regulations and capital market regulators regarding transparency of financial performance reports. Investors will also be eased by the analysis of financial experts.
Choose a trusted broker. KAF Sekuritas Indonesia is one of the Exchange Members that has obtained a business license from OJK and has the right to use IDX facilities according to existing rules.
Disclaimer: The content is made for educational purposes, not a recommendation to buy or sell a particular stock. PT KAF Sekuritas Indonesia is licensed and supervised by the Financial Services Authority (OJK).
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