According to deputy head of OJK's Investment Alert Task Force, Wiwit Puspasari, losses due to illegal investment schemes and loans were recorded at Rp68.2 trillion in 2011, Rp7.9 trillion in 2012, and Rp0.2 trillion in 2014.
"(They reached) Rp0.3 trillion in 2015, Rp5.4 trillion in 2016, Rp4.4 trillion in 2017, Rp1.4 trillion in 2018, Rp4 trillion in 2019, Rp5.9 trillion in 2020, and Rp2.5 trillion in 2021," Puspasari informed during a meeting on the handling of illegal online lending in Palu, Central Sulawesi on Tuesday.
The reason for the rise of illegal investment schemes and loans in the information technology era is two-sided, she said.
From the perpetrator's side, the ease of creating applications, websites, and giving offers through social media, and the existence of servers abroad has significantly increased illegal investments, she noted.
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Meanwhile, on the victims' side, people are easily trapped in high-interest loans and lack an understanding of investment, which results in massive losses, she said.
According to Puspasari, in carrying out their actions, illegal actors usually use various modes such as liking and viewing posts on victims' social media profiles. They also offer direct sales in the form of member packages or referrals, she said.
Some perpetrators even offer to refill mobile data through tier bonuses, she added.
Illegal investment practitioners also use advertising and pyramid schemes such as e-book selling to perpetrate fraud, she highlighted.
Moreover, Ponzi schemes are also used in the form of helping others, selling stocks, and online shopping, she added.
"The public must know the characteristics of an illegal investment. Its characteristics are promising unreasonable profits in a short period, bonuses from recruiting new members, using community leaders or religious figures to attract interest in investing (in fraudulent schemes)," she added.
Other features of illegal investment are without-risks claims and legal uncertainties, she said. For example, even though a cooperative or foundation will have an institutional permit, it will not hold a business permit, she added.
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Translator: M Arshandi, Kenzu T
Editor: Rahmad Nasution
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