What do you think of companies that make false claims about huge benefits for investors?

There have been reports on social media that many people have been duped by fraudulent businesses after depositing huge sums of money with them, and have filed lawsuits to declare their losses. One outfit promised interest rates as high as 30 percent a month. Such extravagant claims are fairly common, but people continue to be taken in by them, even though the authorities have warned the public not to be fooled by such unlikely good fortune. Vientiane Times asked some local residents for their opinions on these get-rich-quick schemes.

Mr Sinxay, a businessman in Vientiane: My friends tried to persuade me to deposit money with one of these companies, saying I would get a large return on the money I invested, but I wasn’t sure whether their operations were legal. I think scams like these are awful, and it’s not so long ago that PS Lao Enterprise Company and Asianface Company Ltd. tried to fool people this way. People should be better informed about such improbable schemes, and carry out checks on the legality of any business before making an investment. What these scammers do is outrageous and the authorities should increase the penalties for people who carry out such disgusting practices.
 
Ms Phouvong Phongsavath, a government official in Sisattanak district: I really feel sorry for people who fall prey these scams, but everyone should question the likelihood of getting 30 percent interest a month on a deposit. We all know that banks and other financial institutions can’t provide anything like this amount of interest, so we should realise that this isn’t normal and start asking questions. As we all know, many people have been scammed in this way, and we should all learn from what has happened in the past, especially as it has been widely publicised.  If someone wants to put their money into such a scheme, they should just deposit a small amount so they don’t lose all their savings. It’s much better to deposit money in a bank or do some other safe form of investment that we know is legal. Even though the interest rate may be low, you can be reasonably sure your money will be safe.   
 
Mr Khamphone Khountingarm, a resident of Vientiane: I hear about scams like this quite often, but in spite of the publicity many people fall prey to such fraudulent practices. I think people should give more thought to what they might be getting into, especially where money is concerned. It doesn’t make sense just to think about the possible benefits. People should be more realistic and look into the details of such a scheme before parting with their money. The sector responsible should keep a close eye on scams like this and put controls in place, as well as alerting the public as soon as cons and tricksters advertise a suspicious investment plan. This would ensure that no one is cheated in the future.
 
Ms Kesone Bandid, a resident of Sikhottabong district: I hadn’t heard about this but something should be done to stop it before it gets out of hand. All business operations should be made to comply with the law. Recently there have been cases of people falling victim to e-commerce businesses. The authorities should carry out more checks and inspections and regulate the activities of all businesses. I’m not sure if it’s even legal to advertise a fraudulent money-making scam, but there should definitely be more controls so that people don’t lose their money to tricksters.

By Lamphone Pasanthong
(Latest Update July 4, 2022)