Losses from illicit schemes and loans reach $8.2 billion in 2011-2021

Palu, C. Sulawesi (ANTARA) – Losses from illegal investment schemes and loans involving millions of victims reached Rp 117.4 trillion, or about US$8.2 billion, in the decade from 2011 to 2021, the said Financial Services Authority (OJK).

According to Wiwit Puspasari, deputy head of the OJK’s Investment Alert Task Force, losses due to illegal investment schemes and loans totaled Rp 68.2 trillion in 2011, Rp 7.9 trillion in 2012 and Rp 0.2 trillion in the year recorded in 2014.

“(They reached) Rp 0.3 trillion in 2015, Rp 5.4 trillion in 2016, Rp 4.4 trillion in 2017, Rp 1.4 trillion in 2018, Rp 4 trillion in 2019, 5, Rp 9 trillion in 2020 and Rp 2.5 trillion in 2021,” Puspasari informed Tuesday at a meeting on dealing with illegal online lending in Palu, Central Sulawesi.

The reason for the increase in illegal investment schemes and loans in the information technology era is twofold, she said.

On the perpetrators’ side, the ease of creating applications and websites and offering offers through social media, as well as the existence of servers abroad, have significantly increased illegal investments, she noted.

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Meanwhile, people on the victim side are easily trapped in high-yield loans and have no understanding of investment, leading to massive losses, she said.

According to Puspasari, illegal actors usually use various methods in carrying out their actions, such as: B. Like and view posts on victims’ social media profiles. They also offer direct sales in the form of membership packages or referrals, she said.

Some perpetrators even offer to top up mobile data through tier bonuses, she added.

Illegal investment practitioners also use advertising and pyramid schemes, such as selling e-books, to commit fraud, she pointed out.

In addition, pyramid schemes are also used in the form of helping others, selling stocks and shopping online, she added.

“The public needs to know the characteristics of an illegal investment. Their characteristics are the promise of improper profits in a short period of time, bonuses from recruiting new members, the use of community leaders or religious figures to stimulate interest in investing (in fraudulent schemes),” she added.

Other characteristics of illegal investments are claims without risks and legal uncertainties, she said. For example, although a cooperative or foundation will have an institutional license, it will not have a business license, she added.

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