Illegal investment practices or commonly called fraudulent investments are still widely circulating in Indonesia. This is in line with the increasing level of digital technology adaptation among Indonesian people. Investing is the right choice if you want to make a profit, but you need to know what is meant by Fraudulent Investment is a form of investment that does not have clear permits and schemes and needs to be carefully scrutinized so you don't become a victim. Many people are still not aware of this illegal investment practice. In fact, the government and related parties continue to eradicate these harmful practices.
Here are tips to avoid fraudulent investments:
1. Make sure to have clear permissions
To collect funds from the public, a special permit from the government is required. If you are not registered and do not have permission from the OJK, you should avoid investing. If the company offers futures or commodity investments, you should check the permit at BAPPEBTI. If it's unregistered and unlicensed, you shouldn't invest your money there.
2. Beware of Unreasonable Profits
Fraud under the guise of bulging investments often promises ridiculous profits of more than 10% within a certain period of time, for example 1 month after investing. Not infrequently these fraudulent investments try to realize the promised benefits so that investors are sure to invest larger funds. From now on, you should not immediately trust investment offers that promise big profits in a short time.
3. Avoid FOMO (Fear of Missing Out)
Don't get carried away by following what other people say. If you want to invest, it's better to study these investment products more deeply, so you don't get trapped by the investment product trends of the people around you. Don't be afraid to be left behind. Don't let it be because you choose an investment product because other people are also investing there. If you lose, you alone bear the loss.
4. Consistently Improving Financial/Financial Literacy
The risk of getting caught in fraudulent investments can be minimized if you increase your financial literacy consistently. Take the time to learn the ins and outs of investing through various sources, such as social media, websites whose validity can be trusted, workshops and seminars. Increased financial literacy will make you more careful in choosing investments according to your needs and personal financial conditions so that you avoid the trap of fraud under the guise of investment.
5. Have a clear investment plan
In order to avoid fraudulent investments, you must have a clear investment plan first. The financial goals are clear for what. What investment instruments should also be clear. Choosing an investment instrument must be according to the risk profile. If you already have a clear investment plan, you will not be easily tempted by fraudulent investments.