|Tuesday, 20-Sep-2005 12:00
Please check with BANK NEGARA!!!
BE WISE, OPEN UP YOUR EYES, PLEASE DON'T GET CHEATED ANYMORE
Before embark on your new career here, please check with BANK NEGARA and SSM about what this company is dealing with.
This company, in accordance to Bank Negara, is an ILLEGAL COMPANY!!!!
This information is copied from Bank Negara booklet of Illegal Transactions in Foreign Currencies:
DO NOT BE INVOLVED IN ASSISTING ILLEGAL OPERATORS AND CHEATING INNOCENT PEOPLE
FOREIGN CURRENCY TRADING BY UNAUTHORISED PERSON IS ILLEGAL
In Malaysia, all foreign currency dealings must be made with or through an authorised dealer. A person (individual or company) who is not an authorised dealer is not allowe to offer services or trade in foreign currency.
Foreign currency trading refers to activities involving the investment of monies/funds in foreign currency with the objective of getting high returns from movemnets in exchange rates. Hence, if you have been approached to invest your money in foreign currency, it is most definitely a foreign currency trading scam!
FOREIGN CURRENCY TRADING SCAMS
Many unsuspecting Malaysians have been cheating by foreign currency trading scams and as a result have lost millions of ringgit. Such scams are conducted by companies which operate illegally. The illegal operators normally target job seekers and investors who seek quick and high returns for their investments
WARNING SIGNS FOR JOB SEEKERS
Do not be involved in assisting illegal operators and cheating innocent people. Check with Bank Negara Malaysia before accepting employment in such places.
HOW TO DETECT ILLEGAL OPERATORS
These illegal operators/companies normally:
* Place attractive advertisements to lure others to listen to their convincing but bogus marketing plan
* Have their headquarters overseas
* Have impressive offices and IT facilities
* Conduct training to prospective empoyees on the principles of foreign exchange trading and hands-on exercises on foreign currency dealing using dummy or fake transactions under an environment controlled by the operator. Normally, all such dummy transactions will result in profits.
* Hire employees based on commission and they are not given a proper employment letter or contract stipulating the employment terms and conditions.
Before employees can start dealing, they are required to look for potential investors and collect deposits from them. Otherwise, they risk losing their jobs. In many of the cases referred to Bank Negara Malaysia, employees who are not able to get clients will resort to borrowing from their parents of family members to invest.
WARNING SIGNS FOR INVESTORS
Illegal operators of foreign currency trading scams will try to impress potential investors:
* With the marketing strategy of the company which promises quick and high returns
* By portraying a professional and reputable image with smart-looking employees, a high-tech office layout and advanced IT facilities. In some cases, investors are even allowed to operate thier account via internet.
With tools of the trade e.g. a news screen showing movements in exchange rates to give the impression that a professional and ligitimate business is being conducted. These facilities are merely cosmetic and do not reflect an actual foreign currency trading office.
Investors can either trade using their trading accounts with the company or through dealers appointed by the company. Investors are also required to sign a business contract which is normally entered between the investors and the company. In most instances, the operators will inform the investors that they will have to send such contracts to its company's headquarteres based overseas for signing. However, such contracts are usually left unsigned. As such, in the event the investors are not happy with the transaction, no action can be taken against the company as there is no binding contract between them.
In the cases reported to Bank Negara Malaysia, there are two scenarios on how investors usually lose their money:
Investors will usually get high returns on their initial investments. This will convince investors to increase their investments to make higher returns. Eventually they will end up losing everything when the owners of the company suddenly go missing.
Investors who have lost their money were told that the market will go up and if they were to increase their investment, they may be able to get back their money. Obviously, this did not happen and they ended up losing everything they had invested.
HOW TO REPORT FOREIGN CURRENCY TRADING SCAMS?
If you have been offered a job to look for potential investors in foreign currencies or have been approached to invest in the foreign currency market from a company, you can lodge a report at the following address:
Foreign Exchange Administration Department,
Bank Negara Malaysia,
Jalan Dato' Onn, 50480 Kuala Lumpur
Telephone: +603-2698 8044 ext 8233
Fax: +603-2691 3266