Sunday, May 31, 2009

It is easy to be cheated (1) - Introduction

I shall be writing a few articles about how easy it is for someone to be cheated in the world of investments. I shall be quoting from several recent experiences in Singapore, but I will not be mentioning specific products or organisations. You have to make a guess.
There will be lessons that can be learnt so that you are not caught in these scams. You have to worry about reputable organisations, as many of them are now engaged in these type of practices in their pursuit of profit.
It is easy for a consumer to be cheating from the following  types of products:
a) structured and banking products
b) insurance products
c) shares
d) trading in foreign currenty 
e) land banking and other non-listed products
f)  exotic products sold by private bankers
Nearly all investments are similar to gambling. The investor in speculating (i.e. gambling) on the price movement of the product. The speculator makes a profit when the price goes up and makes a loss when it goes down. The investor also has to make a choice in selecting the right product to invest it. 
It is easy for a small investor to be cheated in this environment by the other party who has better information or the ability to create the product to their advantage.
Even the cautious investor, who does not wish to take any speculative risk, can be conned into investing in products (such as the credit linked notes) that can wipe out the entire savings, without providing a commensurate rate of return. Some are offered products that have already turned bad, but are packaged in a misleading manner at an over-inflated price. They are being cheated!
Do come to my blog daily to read about these stories and take the lessons to avoid being cheated of your hard earned money.
Tan Kin Lian


hongjun said...


zhummmeng said...

Is it possible for an insurer to think of the company's bottom line and same time its customers' interest? Yes, under fair weather.
I heard during Mr. TanKL's tenor in ntuc he was balancing between this fine line but unfortunately the greedy insurance agents could not see the importance of clients first which is paramount in business especially in a business where products concern the long term financial life of customers. Because of this many greedy agents laid down tools and refused to work.As a result the company's business affected. The current results are evidence of greed.
Policyholders who hold products of his era can testify they are good value for money.The well kept secret is about these old products of his time. This secret was never used to show off until recently it was taken out to misrepresent the current products which are being promoted to be as good as the old ones with such returns.This is gross deception and misleading and dishonest.
In the current economic crunch the interest of the company and the customers diverges.To each his own.
The laws of the jungle are the guidelines. It is now a zero sum game. Naturally, the insurer thinks of its own survival at the expense of their trusting customers.Using a whole army of insurance agents they are sent out to lie, to twist facts, to con their customers why their bonus is cut and why it is for their good that it is cut.
It is like the wolf telling the chicken why some chickens have to be eaten to sacrifice for him and for the long term good of the chicken community.
This is all wayang and sham. Nobody straddles on two boats without the danger of being torn apart.

Koh said...

What have our gate-keepers & regulators esp MAS,etc. been doing? Are they closing their eyes to all these evil & scam practices. WAKE UP & UPHOLD S'PORE'S INTEGRITY FOR JUST PRACTICES & GOOD & FAIR GOVERNANCE BEFORE IT IS TOO LATE!!

Anonymous said...

MAS if you here please listen to the outcry from the public , please do something to review the policy . If not, sooner or later people will lose trust on the authority . This will affect the confidence of the policy holder and invester in future .

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