The Hidden World of Scams: Protecting Your Hard-Earned Money
if it sounds too good to be true, it probably is a scams
The word “scam” may not have an official place in the Bangla Academy’s English-Bengali dictionary, but it’s a well-known term in financial circles. Defined by the Oxford Advanced Learner’s Dictionary as “a clever and dishonest plan for making money,” scams are deceptive schemes that prey on people’s financial aspirations.
The Mechanics of a Scam
A few years ago, a prominent Bangladeshi figure was caught with a so-called money-making machine, making headlines in newspapers. But in the real world of financial fraud, scammers don’t need machines. Instead, they manipulate your trust and savings, operating within systems supposedly under state authority.
According to the Cambridge English Dictionary, a scammer is someone who makes money illegally, often by deceiving people. But how much control do you really have over your finances? Inflation erodes savings, currency values fluctuate, and financial security remains uncertain. Your desire to increase your wealth is precisely what scammers exploit.
The Temptation of Easy Money
Scammers understand human nature. They know people always want “more.” That insatiable desire makes individuals easy targets for fraudulent schemes promising high returns. The moment you start believing in these enticing offers, control over your money gradually shifts from your hands to theirs. It starts with pocket change but can escalate to your savings, investments, and even inherited wealth.
Scams come in various disguises, all with one ultimate goal: to siphon off your money.
The Rise and Fall of Infamous Financial Scams
In the past, before well-known fraudulent organizations like Jubok and Destiny emerged, similar scams existed under different names. In the Pakistan era, there were infamous companies dubbed “Hay Hay Companies”—a phrase that has since become synonymous with financial fraud.
Fraudsters have always adapted their methods to the times. Some posed as religiously compliant investment firms, promising “profit” instead of “interest,” luring unsuspecting investors. Many people broke their piggy banks and sold assets, believing they were making a wise financial move, only to see their money vanish overnight.
The Jubok Scam
Jubok (Jubo Karmasangsthan Society) surfaced in 1994, promising lucrative employment and business opportunities. With multi-level marketing, it expanded into telecom, real estate, tourism, fisheries, and even education. It collected an astounding 2,588 crore taka from nearly 300,000 clients (The Daily Star, December 17, 2017). However, in 2006, Bangladesh Bank shut down its financial activities, and by 2009, several executives were arrested or fled. Victims never recovered their money.
High-profile individuals were often recruited to lend credibility to such scams. A retired government official who had been an advisor for Jubok once admitted, “My role is limited to advising. On paper, they won’t be able to implicate me.” This statement alone revealed the underlying suspicion that something was amiss.
The Destiny Debacle
Destiny-2000 Ltd. launched in December 2000, quickly amassing 4.5 million distributors and nearly 3,000 employees by 2012. Its ambitious ventures spanned everything from organic fertilizers to plans for launching an airline. However, in reality, it was just another pyramid scheme. The company misappropriated 2,433 crore taka from 1.75 million investors. Despite the involvement of influential figures, including a former army chief, Destiny ultimately collapsed, leaving investors devastated.
The Global Scam Landscape
Financial fraud is not limited to Bangladesh. Scams of staggering proportions have shaken other nations:
- 1MDB (Malaysia) – An $11 billion fraud scandal involving then-Prime Minister Najib Razak. His son reportedly used embezzled funds to purchase luxury properties, a private jet, and expensive artwork.
- Nigeria’s Loan Scheme – A fake World Bank-backed cooperative lured rural individuals into paying processing fees for non-existent business loans.
- India’s Cooperative Bank Fraud – Amanath Cooperative Bank, with 272,000 depositors, nearly collapsed due to corruption before being taken over by another bank.
- Pakistan’s MLM Scams – Multi-level marketing (MLM) schemes have defrauded countless investors under the guise of high returns, leading Indian courts to ban MLM entirely.
Lessons Learned: How to Stay Safe
The best way to protect yourself is to recognize the warning signs of scams:
- Too-Good-To-Be-True Returns – If an investment promises guaranteed high returns with little or no risk, be skeptical.
- Lack of Transparency – Fraudulent schemes often avoid clear explanations about how money is generated.
- Pressure to Invest Quickly – Scammers use urgency to trap victims before they can verify legitimacy.
- Unregistered Companies – Always check with financial authorities before investing in any institution.
- Celebrity Endorsements and Big Names – Scammers often use influential figures to gain public trust.
Scams have evolved over the decades, but their core deception remains unchanged—preying on people’s financial aspirations. From “Hay Hay Companies” to modern Ponzi schemes, fraudsters will continue to adapt. The only defense is awareness. Before investing, research thoroughly, ask critical questions, and remember: if it sounds too good to be true, it probably is.
