The invitation to the above scams takes many forms. In addition to the unsolicited phone calls, the more "preferred" mode is through the Internet. Potential victims are also lured to attend seminars or face-to-face meetings.  

If you are faced with any of the above situation, what should you do to protect yourself? 

Protection #1: Avoid any investment that guarantees regular or large profits for a small outlay. Be extremely wary of companies that guarantee large profits or tout high performance over a short period of time. You must remember that every investment involves risks and you must have often heard, "high risk, high return!" Be extra careful, especially if the investment is supposed to give you high returns with low or no risk.  

Protection#2: Be wary of plans that focus on paying you to recruit others instead of paying you to sell products and services. Key words that should caution you are "downline" or "pyramid". 

Protection#3: Never sign up for an opportunity in a high-pressured situation, such as "you have a limited time to join this scheme" or "buy now or miss out". Remember, if it is a legitimate business, it will still be around tomorrow, next week, next month or next year. 

Protection#4: Be sceptical about unsolicited phone calls about investments from offshore salespersons or companies with which you are unfamiliar. If the caller says that he or she is a broker's dealer or investment adviser licensed by an authority abroad, ask for the name of the foreign regulator by which it is licensed and check the websites of the foreign regulator which would have a list of licensed or registered persons. You must always check the credentials of a licensed person with the relevant authority before parting with your money. 

Protection#5: Be sure you get the company's performance track record. Also ask for written information on the investment product and the business, as well as the risks involved in the investment. Read carefully the prospectus or annual report of the company before investing.  

Protection#6: Do not provide any financial or personal information before you establish that the company is legitimate. 

Protection#7: Always check against the regulator's websites, for example, the Securities Commission's website (www.sc.com.my) for information on investor alerts, or the list of licensed intermediary companies and so forth.  

Protection#8: If in doubt, do not invest. Why should you risk your money if you cannot get solid information about the company, the salespersons/agents, or the investment?  

Protection #9: Never remit your money through telegraphic transfer or through any other mode to any foreign jurisdiction without checking the investment's legitimacy.