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Scam Alert: The Broker AL.InvestGroup Recommended by a Friend Has been Warned by Regulator

2023-05-23 Brokersview

Many investors prefer referring to other people's recommendations and knowing which companies or products were praised by existing clients. And most of them do not suspect investment opportunities recommended by friends or relatives because of trust in their acquaintances. However, pervasive scammers may approach you unsuspectingly and cheat you out of your money.


A Malaysian investor was recommended by a friend to invest in AL.InvestGroup. She thought she could make money, just like her friend, but only found that the broker was actually a fraudster.


The user had a friend who claimed to have invested in AL.InvestGroup and have withdrawn smoothly, so the friend recommended this broker to her. Under the recommendation, the user dropped her guard and contacted the staff of this broker through the number given by her friend.


The staff introduced her to a trading plan with a deposit requirement of RM400. The customer found it good and paid RM400 as requested to invest.


Not long after that, the so-called "trader" arranged by the company for the investor sent a notice saying that he had earned about RM17,000 for her! She did not even have time to celebrate the earning and was immediately asked to pay a withdrawal fee of 15% of the profit, which was RM2,700. The investor was not satisfied with being asked to pay because she had no idea that she would have to pay an additional fee for withdrawals.


The whole thing also made her feel that the situation did not go right, so the user decided to quit. But to her surprise, the scammer started threatening her, saying she would be fined if she didn't pay the withdrawal fee in time!


AL.InvestGroup, located in Malaysia, claimed to provide various financial products and services such as stocks, Forex, and cryptocurrencies to the investing public, and was also licensed by the Securities Commission of Malaysia (SC) as a "Digital Investment Management (DIM) company."


In fact, AL.InvestGroup was an illegal investment company that was not only unlicensed but was also warned by the Malaysian SC for conducting unauthorized business. The scam also used other trading names such as Al Ramz General Trading, Syarikat Al Ramz Investment, and Alinvest Group.


Never neglect the necessary steps when choosing an investment company because of a recommendation from an acquaintance and always know that your potential broker is licensed by the local financial regulator.


If investors work with an unlicensed firm, it will be very difficult for them to recover the scammed funds.


An acquaintance making money with a fraudulent broker does not prove that the invested company is reliable. Since it may be a deliberate scam designed by the scammers to attract more people to fall for it. Non-compliance with laws and regulatory rules is the best proof that a scam broker is unreliable.