Beware of Investment Schemes on Social Media
As many of you are aware that there are many advertisement on social media offering investment tips such as offering a free list of high dividend stocks. They will distribute 1-3 stocks with expected returns of 10%-15% every week, as well as stock news and courses.
They claimed that they have connections with the institutional platform that allows ordinary investor to trade like institutional investor using their trading apps.
It is very likely that all the investment schemes offered on social media platforms are scams.
First, you will be invited to an investment group, a teacher and an assistant will approach you to give free lessons. They will share some stock trading tips which would make you gain profit if you followed. They will also register you to join the 1 hour online trading class every Sunday to Thursday for free.
The members of the whatsapp group are very active, they will share their daily life photos and do a lot of discussions of trading. Their profile pictures are visible and some are not, just like normal whatsapp group. Some group members will pm you personally to make friends with you, they will act like they are newbie and they have bad experiences in stock trading, they also scare to be scammed, comforting you that you're not the only new guy. They will even form a small group and invite you in, to protect each other.
In the online class (Sunday - Thursday from 8-9pm), teacher will analyze the latest market trend and start selling their market profit plan to the students. The students in the online class are very active, it is not pre-recorded video, it is a live class and whatever you type in the class, teacher will give feedback. At the end of the one hour session you will have a powerpoint deck from the sifu scammer to make things so real.
Once you've joined for certain days, teacher will start persuading students to follow her/his plan, to invest in the global market which can get higher return. She/He will invite a so-called partner platform for student to download which can be found in Apple Apps Store and Google Play Store, not sending you an unknown link to download.
After downloading the apps, register successfully, the customer service will request for video call for verification. Everything looks proper and professional.
There are many functions in the apps like Block Trades, AI Trading Funds, IPO subscription and etc, like normal investment apps, you need to deposit the money to your apps wallet before you start trading. The apps mirroring the real market index, everything you trade is following the market index, everything like real until the time you withdraw the money.
When withdrawal gets problem, you will start asking your friends in the group, you will found, all of them can only be reached through whatsapp, their phone numbers are all not in service or unreachable. You're the only real person in the study group among 100++ of members, including your teacher and assistant.
The members of the whatsapp group are very active, they will share their daily life photos and do a lot of discussions of trading. Their profile pictures are visible and some are not, just like normal whatsapp group. Some group members will pm you personally to make friends with you, they will act like they are newbie and they have bad experiences in stock trading, they also scare to be scammed, comforting you that you're not the only new guy. They will even form a small group and invite you in, to protect each other.
In the online class (Sunday - Thursday from 8-9pm), teacher will analyze the latest market trend and start selling their market profit plan to the students. The students in the online class are very active, it is not pre-recorded video, it is a live class and whatever you type in the class, teacher will give feedback. At the end of the one hour session you will have a powerpoint deck from the sifu scammer to make things so real.
Once you've joined for certain days, teacher will start persuading students to follow her/his plan, to invest in the global market which can get higher return. She/He will invite a so-called partner platform for student to download which can be found in Apple Apps Store and Google Play Store, not sending you an unknown link to download.
After downloading the apps, register successfully, the customer service will request for video call for verification. Everything looks proper and professional.
There are many functions in the apps like Block Trades, AI Trading Funds, IPO subscription and etc, like normal investment apps, you need to deposit the money to your apps wallet before you start trading. The apps mirroring the real market index, everything you trade is following the market index, everything like real until the time you withdraw the money.
When withdrawal gets problem, you will start asking your friends in the group, you will found, all of them can only be reached through whatsapp, their phone numbers are all not in service or unreachable. You're the only real person in the study group among 100++ of members, including your teacher and assistant.
NEVER download any investment app offered unless it is verified by the Securities Commission (SC) Malaysia or Bank Negara Malaysia (BNM)!
Reference:
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Just a newbie trying to earn a better living through stock investment.
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liquidgold : BNM is Bank Negara Malaysia. SC is Security Commission which also refers to Malaysia security commission. Good article but please be mindful not all understand acronyms of financial world.
Fun Runner OP liquidgold : Thanks, I've edited the post.
Zamm : Yes, they are living among us. Telegram & Whatsapp are their platform to lure poor victims, but the Telegram is the most. Not only they randomly pick our numbers, but up to hacking level they are doing to make sure victim are join their group. I always hit by them and 2 times "forced to join" by hacked number whom were also my best friends. The way I treat them was "request loan to admin & their member-those whom already profit 30K" or "ask admin to create a fund to support poor community since all members always profit up to 100K" . I did that many time & frequent post to the group and later their admin "kick me out"