How to Identify Money Games from Credible Investment Platforms

  • Funding Societies

    Money game operators are having a big moment in the local media these days, though most of us would rather they disappear. Notable schemes such as MBI Group and JJ Poor to Rich (JJPTR) dominated recent news. The Ministry of Domestic Trade, Co-operatives, and Consumerism recently froze RM 177 million (around USD 41.5 million) from accounts linked to the MBI Group.

    So what are money games and how do we avoid them? How can we tell legitimate investment platforms from frauds?

    Money games are really just another term for scams and Ponzi schemes. People are lured into these schemes because of the get-rich-quick promises.

    Worse, there’s actually a strong demand for such services. This article states that there are more than 40 money game operators in Malaysia, a third of them based in Penang. What’s more is a source in the same article claims that 6 out of 10 adult Chinese in Penang have invested in money games. The demand stems from an appetite for higher investment returns; people are willing to take the risks involved.

    To reduce the risk of loss, members of the public are advised to regularly visit the Bank Negara Malaysia (BNM) website for a list of companies and websites which are neither authorized nor approved under the relevant laws and regulation administered by BNM.

    Not all new investment platforms are scams. Especially as we are living in the golden age of financial technology (FinTech). FinTech grew and developed as a response to the financial problems we face, from making financial information more easily accessible to addressing the lower return rates of traditional investments. Some new investment alternatives created by the FinTech industry include virtual currencies and peer-to-peer (P2P) financing.

    A P2P financing platform essentially connects credit-worthy businesses and SMEs with investors through an online marketplace. By investing into businesses and SMEs, investors will earn higher returns while businesses get working capital to grow and develop their enterprises.

    There are exciting, profitable – and perfectly legitimate – investment opportunities out there. And if you know what criteria to look for, it isn’t difficult to identify money game operators from P2P financing platforms:

    Some final words. Here’s the quick key takeaways:

    There is a big appetite in Malaysia for higher returns. But such hunger comes at a cost. There are many con artists and scams out there.

    FinTech solutions such as P2P financing are here to stay. As an investment alternative, P2P financing offers high returns, is affordable, and its concept is easy to understand.

    As with any investment, pick with caution. Choose a P2P financing platform recognized by the Securities Commission (SC) and has a good track record. For a list of P2P financing operators approved by the SC to operate in Malaysia, click here.

  • @kianleng Hi! I have almost fell for one, but the speaker was a bit over enthusiastic which made me quite suspicious. Also the table showing the repayments made it look like a pyramid scheme. I felt foolish to even attend the event. I agree it's hard to know what is legit but with the interest at the bank being so low I think you need to take risks to get a decent return. I shall try this out and hopefully it will pay off.

  • Don't invest in the company which is promoting via MLM marketing plan. 99.9999% that it is a money game.


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