My opinion is that these investors are not going to get back a single cent of their money and this fiasco is going to be another sobering investment lesson for them. The hard truth is, most Singaporeans really don’t know how to invest and the worst thing is that they can’t handle this truth. Last month, in my article, I touched on this issue after one of my readers commented that Singaporeans are intelligent. I pointed out that actually many Singaporeans choose to indulge in self-glorification and refuse to accept the hard truth that we are not genetically engineered to be money smart. Many Singaporeans were victims of bogus investment schemes because they don’t know how swindlers work.
There will always be new scams or bogus investment schemes devised to make investors part away their money. So, to be rich and successful in Singapore, you must first know how to protect your assets. There is no point in establishing a successful career or having multiple income sources but end up losing your wealth to fraudsters. Below are some tips from MoneySense on how to protect yourself against money scams:
1) Do not believe in sales pitch that promise super high returns. If something is too good to be true, then it is.
2) High pressure tactics such as “once in a lifetime” or “limited time offer” are common ruses used by sales representatives to tempt you. Always be skeptical and tell yourself that there are no such things as “free lunch” or “easy money”. There are only stupid people easy to cheat.
3) Check whether the company is regulated. If the company is based in Singapore, you may conduct the following simple checks:
- Check the MAS Financial Institution Directory
This is a list of financial institutions regulated by the MAS to operate in Singapore. After you have found the entity in the Directory, be sure to note what activities it is authorised to conduct in Singapore.
- Check the Investor Alert List
This is a list of unregulated persons who, based on information received by MAS, may have been wrongly perceived as being licensed or authorised by MAS. The list is not exhaustive and will be updated.
- Check the MAS Register of Representatives
This is a list of representatives providing financial advisory or capital markets services under the Financial Advisers Act (FAA) and the Securities and Futures Act (SFA).
Always remember: perception is real and perception is what you perceive reality is. The reality is that there will always be Singaporeans who fell prey to these bogus investment schemes. If you think that you are too smart to be cheated, then good luck in your financial journey.
SG Wealth Builder