7 Red Flags of Bogus Investments You Must Not Ignore

Investing is one way people try to grow their assets and prepare for future financial needs. But not every offer can be trusted, especially those promising large returns in a short time. Understanding the characteristics of “investasi bodong,” or fraudulent investment schemes, is a key step to avoid being lured by offers that look profitable but are not.

According to a report by RRI.co.id Sintang, published on 14 August 2026 and compiled from the pages of djkn.kemenkeu.go.id and pegadaian.co.id, a bogus investment is an illegal offer that promises big profits quickly while lacking a business licence and a clear underlying asset.

Contents

01

Unclear Business and Recruitment Bonuses

02

High Returns with No Risk

03

Pressure, Tiers, and Unclear Legality

04

Opaque Fund Management and Ponzi Schemes

Unclear Business and Recruitment Bonuses

A bogus investment typically does not explain transparently how the business operates, what products are offered, or where the profits come from. This should raise suspicion, because investors have the right to know how their funds will be managed. Another warning sign is the promise of a bonus whenever someone successfully brings in a new member, a pattern that can indicate returns depend more on recruiting people than on any real business activity.

High Returns with No Risk

Offers of very high returns in a short period are a sign to be wary of. Every investment carries risk, so a promise of large gains with very little or no risk should be considered carefully. Investments that promise certain profits and guarantee the repurchase of assets should also be treated with caution, because investment results are not always fixed and risk can affect the value of returns.

Pressure, Tiers, and Unclear Legality

Perpetrators often push potential victims to make hurried decisions, usually by offering a very short promotional deadline. They may also ask for an upfront payment, suggesting that the more money deposited, the larger the profit will be. Bogus investments are often packaged in tiers such as silver, gold, and platinum, each with a different deposit amount and a promise of bigger returns without an adequate explanation of the business. Their legality is also unclear, so people should verify that a company is officially registered with the OJK, or with Bappebti for crypto assets and commodity futures.

Opaque Fund Management and Ponzi Schemes

Fund management in these schemes is not transparent. In a number of cases, they use a Ponzi pattern, paying returns to older members using money deposited by newer members.

Before investing, people should confirm that the company and product have proper legality under applicable rules. Offers spread through social media, WhatsApp, Telegram, and other digital platforms, sometimes using the photos or names of celebrities, religious figures, and public figures, should be treated with extra caution.