UM Surabaya Economic Expert Reminds to Beware of Illegal Investments

• 01 Mar
• 2022

Ilustrasi Foto (Okezone)

UM Surabaya Economic Expert Reminds to Beware of Illegal Investments

• Article
• By Uswah Sahal
• Economy
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Recently, we have seen the rise of illegal investments which continue to take victims.

Fatkur Huda, Economic Expert at the University of Muhammadiyah Surabaya (UM Surabaya) explained that the losses resulting from illegal investments are very fantastic in value, even touching trillions. This is a part that must be watched out for by people who are currently fond of investing.

"Data recorded by the Investment Alert Task Force (SWI) throughout 2022, at least 21 illegal investment platforms have been closed, even in the previous five years, SWI recorded that around 1,072 illegal investment platforms had been closed," explained Fatkur in a written statement (28 /02/2022).

Fatkur also explained a number of things that must be recognized about the signs of illegal investment.

First, it promises unreasonable profits in a fast time. Indeed, as a very attractive means of promotion, the lure of fast and large profits is one of the characteristics that investors must be aware of when choosing a company to invest in.

"Investments should be long-term or at least within 1 year. Meanwhile, if it is done for a period of 3 to 11 months, this is called semi-investment or trading," explained Fatkur.

Second, Promising bonuses for recruiting new members "member get member". Usually investment companies that you need to watch out for are those that offer certain bonuses if old members can recruit new members, the more recruits, the more benefits from the bonuses that will be obtained.

Third, claim without risk. Of course, the principle in trading is that there is no business that is without risk, let alone investment trading. Obviously this doesn't exist, because in the process of submitting a business, the business owner will certainly provide an explanation of the risks faced. So this gives an illustration that the business will be different from the permit.

Fatkur also added that in looking at the benefits we have to compare it with the Risk free rate on deposits, so we can know whether the benefits offered are normal or not. So it needs a separate vigilance if the investment offer exceeds the risk-free rate. Moreover, it offers definite results continuously.

"Besides that, there are also a number of things where sometimes these illegal investments take advantage of community leaders or public figures to attract investment interest, even though basically they are only invited to attend an event being held," added Fatkur.

Finally, that we need to ensure the legality of the investment company we are going to. Investments must have an OJK permit for the financial services business, Bank Indonesia for banking and CoFTRA for commodity trading. So that if the legality cannot be demonstrated, it will clearly lead to illegal investment.