Not having a permit is one of the easiest characteristics of fake investment that you can recognize. Almost all cases of fake investment involve an investment product that does not have permission from the relevant parties. Although, there are also cases of investment fraud that already have official permission. So, every time you get an investment offer from any party, make sure you ask about the legal aspects of the product. Currently, the financial industry, which includes the capital market, banking, insurance, and finance industries, is under the umbrella of supervision under the government. While the futures and commodity trading is overseen by the Commodity Futures Trading Regulatory Agency under the Ministry of Trade. In the meantime, if you think you’ve become a victim of a fraud, we suggest you click here.
To be able to market a financial service or product, it is not enough if a company has a business license. There are special permits that must be obtained from the relevant authorities. So, if there is a claim that “already has a permit” in the form of a Limited Liability Company establishment license, it is not enough to strengthen the legality aspect of the investment product. Why is legality so important? The legal aspect provides protection if at any time there is a dispute or problem with the investment product, you know where to complain. In addition, with clear permission, that means there is oversight from the authorities.
On the other hand, investment always carries risks. That is a law that cannot be ignored. The higher the prospect of profit, the higher the risk of loss. Most cases of false investments capture victims with the lure of certain high or unreasonable profits. For example, when the current bank deposit interest rate is around 5% per year, fake investments do not hesitate to give the lure of a definite profit of up to 20% per month or 240% per year. That certainly does not make sense.
You should also be suspicious if there is a claim “definitely profit” or “guaranteed profit”. Because in investment, the true benefits are still in the form of prospects or expectations (expected return), not a certainty. Providers of investment products are also prohibited from giving promises of certainty to investors.