Fraudulent investment schemes or illegal investments are now taking on increasingly diverse forms. To avoid becoming a victim and suffering financial losses, there are several key points to be cautious about before committing any capital.

This warning was conveyed by Ismirani Saputri, Head of the Financial Services Authority (OJK) Kediri. According to her, fraudulent or illegal investment schemes are continuously evolving with new methods that aggressively target the public.

“Our team at Satgas Pasti (Task Force for the Eradication of Illegal Financial Activities) is constantly working to combat these activities, but individuals must also take the initiative to protect themselves,” she said during her guest appearance on Santai Siang on Pro 2 RRI Madiun, Monday, June 16, 2025.

Ismirani outlined several key signs of illegal or fraudulent investment. “First, be cautious if you’re promised high returns with no risk. In the real world, no investment comes without risk,” she emphasized.

The second warning sign is the lack of clarity regarding the office or the management of the investment. “If it's unclear who manages the investment and where their office is located, that's a red flag,” Ismirani warned.

The third indication is the absence of proper licensing. “These schemes often operate without authorization from the OJK, even though any entity that collects public funds must obtain official approval from the authority,” she explained.

She also mentioned that operators of fraudulent investments often use photos of public figures or religious leaders to create an illusion of legitimacy.

“They might display a picture taken with a celebrity or respected figure, but it could just be a casual photo, and doesn’t mean the public figure endorses the business,” she clarified.

Ismirani urged the public to follow the principle of 2Ls before investing: Legal and Logical. Legal refers to the legality of the investment and its managing entity. “You can verify their legality by checking whether they have a license from the authorized regulatory body,” she said.

Logical refers to whether the promised profits make sense. “Are the returns realistic, or are they unusually high and risk-free? If the investment fails to meet both the legal and logical standards, then it’s best to walk away,” she concluded.