At long last, the authorities are cracking down on dodgy investment websites that have been luring unsuspecting investors to their financial downfall. According to a Star report dated 13 June 2007,  the Securities Commission has blocked the websites of the following 6 “cyber scams”:

www.abbfund.com or www.abfund.us,

www.cfdventure.com,

www.swedenfund.com,

www.uebond.com,

www.esuissefund.com or www.efmf.com.pa and

www.ecashfinance.com

Other than the above, there  have been quite a number of cyber scams in recent times that everyone should be wary of including:

 – the buy-e-barrel “investment” scheme which offered daily interest of between 2% and 3% for an investment of between US$100 and US$2,000

 – the Swisscash or Swiss Mutual Fund scheme which I had written a post about last September – two Datuks (no less!) were remanded to assist in investigations on this get-rich-quick scheme. Investors paid US$30 to join the scheme plus a minimum investtment US$100 for the promised returns.

It is reported that the SC are planning more raids (as many of these US$-collecting “investment” sites are actually operated out of Malaysia) and have identified at least 60 such illegal sites to be barred in the coming months. Under the law, any operator found guilty of such illegal deposit-taking activity is liable for a fine of RM10 million or 10 years or both.

For all investors out there like I said before, if something sounds just too good to be true, it probably is!! Risk and return go hand in hand. If you plan to invest in mutual funds, go for funds with a good management track record and average historical returns of between 8-12%. But do bear in mind that past performance is no guarantee of future returns. Always diversify and practise asset allocation. Remember…remember…. 🙂

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