Malaysia’s money game scams are nothing new and they have remained in the spotlight since the first get-rich-quick scheme was exposed to the world. Yet, many still fall prey to these money game scams even with the internet providing a vast amount of information. Indeed, the allure of quick riches can often overshadow the importance of sound investment decisions. Distinguishing between legitimate investment opportunities and fraudulent (money game) schemes is crucial to protect your hard-earned money. This article will shed light on the characteristics of money games (often referred to as a Ponzi scheme), and provide practical tips on how to spot and avoid them.
So, what are money games and how do we avoid them? How can we tell legitimate investment platforms from fraud? Let’s find out.
What Are Money Game Scams?
Money games are essentially scams and Ponzi schemes disguised as lucrative investment opportunities. Most people are lured into these schemes because of the get-rich-quick promises. There are a few common types of money games such as:
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Investment Scams:
Involves fraudulent investment schemes promising exorbitant returns on investment in various assets like real estate, commodities, or cryptocurrencies.
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Forex Scams:
These scams target individuals with lofty promises of high profits from foreign exchange trading.
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Online Gambling Scams:
As its name suggests, these scams often take the form of online gambling platforms that offer fake opportunities for guaranteed wins.
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Pyramid Schemes:
Relies on the recruitment of new members to generate income for existing members.
So are money games scams? Yes, however, people are still attracted by the promise of riches — so much so, that these games continue to operate to this day. This demand stems from an appetite for higher investment returns, and people are willing to take the risks involved while ignoring the warning signs that non-legitimate investment platforms display.
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 authorised nor approved under the relevant laws and regulations administered by BNM.
Spotting the Red Flags: How to Spot an Investment Scam
Not all new investment platforms are scams. We are indeed living in the golden age of financial technology (FinTech), where the industry 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 have included virtual currencies, debt investment, and digital financing.
However, amidst this innovation, fraudulent schemes like money games continue to pose a significant risk. It’s essential to differentiate between legitimate platforms, such as debt investment and digital financing, with these deceptive operations.
A debt investment and digital financing platform essentially connects creditworthy businesses and SMEs with investors through an online marketplace. By investing in businesses and SMEs, investors will earn higher returns while businesses get working capital to grow and develop their enterprises with good online investment platforms.
Next, we’ll cover the differences between debt investment/digital financing and money games.
What Are the Differences Between Debt Investment/Digital Financing and Money Games?
The promise of quick returns and minimal effort can often lead investors astray. While it’s tempting to chase high-yield investments, it’s also crucial to distinguish between legitimate debt investment or digital financing platforms and potentially risky money games. To that end, there are plenty of differences between legitimate investment opportunities and these money game schemes, ranging from the subtle to the fairly obvious distinctions. Knowing how to tell them apart will be key to ensuring your funds do not get into the wrong hands.
Some of the things to look out for when deciding if an investment platform is legitimate or a potential money game include risk and returns, marketing strategies, product and service descriptions, transparency of their services, government/regulations, and security. The table below outlines in detail, the differences between debt investment and money game platforms so that you can stay informed about everything about money games.
| Debt Investment/Digital Financing Financing Platforms | Money Game Platforms |
| Risk & returns | |
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| Marketing methods | |
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| Product/service descriptions | |
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| Transparency | |
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| Government and regulations | |
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| Security | |
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Key Takeaways
The allure of high returns can make it tempting to invest in opportunities that promise quick riches. However, it’s essential to approach investments with caution and do thorough research before parting with your hard-earned money. First, you’ll need to understand the key differences between legitimate investments and money games.
To reiterate, the key differences include:
- Risk & Returns
- Marketing Strategies
- Product and Service Descriptions
- Transparency
- Regulatory Status
- Security
By distinguishing between these credible investments vs money games, you can increase your chances of achieving your financial goals while safeguarding your capital. If you’re interested in starting your investing journey with Funding Societies, we suggest you read up on our Debt Investment and Guaranteed Investment Note guides for more information.
