Thursday, Dec 06, 2012
KUALA LUMPUR - Nearly 58,000 people have fallen victim to get-rich-quick schemes in the last two years.
Deputy Domestic Trade, Cooperatives and Consumerism Minister Datuk Rohani Karim said these people were cheated in 66 cases involving pyramid schemes, "kootu" and direct selling scams.
She said the government had embarked on several initiatives to curb these illegal activities.
Replying to a question in the Dewan Negara yesterday on the number of people who have been cheated through such schemes, she said the government had started a programme targeting direct selling companies and distributors.
"They are reminded of the importance of abiding the provisions of the Direct Sales Act and Anti-Pyramid Schemes Act 1993," she added.
Greed has been cited as one of the reasons why people fall victim to get-rich-quick schemes. Other reasons include influence from friends, colleagues and relatives, and also the easy availability of personal loans from financial institutions.
Rohani said the government had amended the Direct Sales Act and the Kootu Funds (Prohibition) Act, making all forms of pyramid schemes illegal and heavy penalties had been introduced.
The government has also gazetted the offences under these laws as well as some offences in the Companies Act under the Anti-Money Laundering Act and Anti-Terrorism Financing Act.
