Frequent fintech investment fraudulent cases in Indonesia.
The Investment Alert Task Force (SWI) of the Financial Services Authority (OJK) noted that Indonesians level of financial literacy is still below 40%. This is one of the reasons why there are a lot of illegal investments or fraudulent investments cases in Indonesia.
Based on SWI data, fraudulent investment practices have cost Indonesians up to IDR 117.4 trillion in the last 10 years.
This figure is greater than the 2021 DKI Jakarta APBD of Rp. 84.19 trillion and almost 12 times the budget for the XX Papua National Sports Week (PON) 2021, which is Rp. 10.43 trillion.
Fintech Investment Fraudulent Characteristics
Here are several characteristics of fraudulent online or offline investment method
- Promising unreasonable profits in a short time
- Promising bonuses from recruiting new members “member get member”
- Utilizing community leaders/religious figures/public figures to attract investment
- “Risk free” claim.
- The legality is unclear.
The Investment Alert Task Force also found several of the same methods used by fraudulent investment actors to ensnare their victims. Those are:
Unlicensed Equity Crowdfunding or Securities Crowdfunding activities
This mode connects investors with companies or MSMEs that need funding. But in fact, it did not happen even the funds were transferred to the account of the perpetrator. Examples: PT Share Bintang Teknologi, Invez.ID, and PT UrunModal DOT COM.
Offering shares with a money game scheme.
Its characteristics are that it offers investment packages with fixed returns, no time limit, uses a member get member scheme to offer referral bonuses if you invite other people. For example PT CMI Futures and PT Nusa Profit.
Duplicate website or company name with permission
The perpetrators offer fraudulent investments in the name of a licensed company, use the logo of the authorized agency and offer it through websites, SMS, Telegram to WhatsApp.
Unlicensed investment advisory activities
An example of this case is Jouska who advertises himself as a Financial Planner even though his license is for other educational service activities.
To make you to be more aware, here is the list of illegal fintech institution
Souce: OJK, okezone, nbcindonesia