Offered 1% return every month, how do I know whether it is a scam or not?

Offered 1% return every month, how do I know whether it is a scam or not?

1% every month.

Sounds small, right?

If someone told me, “Charles, I can give you 1% every month,” I might initially think:

“Okay, only 1% lah.”

But wait.

Continuous and never ending 1% every month is 12% a year if we simply multiply it by 12.

If the returns are compounded monthly, it is actually about 12.7% a year.

12.7% returns per year?! If banks have this option, they would have invested too! Then, they pay us the Fixed Deposit rate of just 3 percent… Now suddenly, 1% per month doesn’t look so small.

And that’s where I would start asking questions.

Because when someone promises you a return that looks attractive and consistent, the first question should not be:

“How much can I make?”

It should be:

“How are you going to make this money?”

#1 – WHERE does the return come from?

This is probably the most important question.

If someone offers me 1% every month, I want to know:

What business are you doing?

Is it property? (where is the projects…). Stocks? (which one are we invested into?)

Private lending? (complicated somewhat…) A business? (What is the nature of the business)

Trading? (up and down and yet can still offer a consistent 1% per month?)

Crypto? Something else?

And how exactly does that business generate enough profit to pay me 1% every month?

This is important because money doesn’t magically produce money.

There has to be an underlying economic activity.

If someone is buying a property, where does the rental come from?

If someone is trading stocks, where does the profit come from?

If someone is lending money, who is paying the interest?

If the answer is vague — “our proprietary algorithm”, “AI trading”, “special opportunity”, “guaranteed strategy” — I would become very uncomfortable.

Bank Negara Malaysia itself warns consumers to be wary of “guaranteed returns” and returns that are unusually high with little apparent risk. 

#2 – 1% a month is actually quite high

Let’s put this into perspective. Suppose you have RM100,000.

At 1% a month, that’s:

RM1,000 every month. RM12,000 a year. Within just 9 years, you have doubled your money!

Sounds fantastic.

But the person offering you the investment also needs to make enough money to pay you.

If they promise your capital is completely safe and they will give you 1% every month, then I have an obvious question:

Where is the risk?

Because in the real investment world, higher returns normally come with higher risks.

There can be exceptions.

But when someone tells me:

“High return, guaranteed, no risk.”

That’s when I start walking backwards.

Haha.

#3 – “But I know someone who already got paid!”

This is one of the most dangerous arguments.

You may have a friend who invested RM10,000.

He received RM1,000.

Then another RM1,000.

He tells you:

“Charles, it’s real lah! I already got the money!”

Maybe. But receiving the first few payments does not prove that an investment is legitimate.

A scam can sometimes pay early investors to create confidence.

Then those investors tell their friends. More money comes in.

More people believe it is genuine. Until suddenly…

Cannot withdraw.

This is not just theory.

In the original article, I wrote about a 77-year-old retiree who lost RM473,000 after being promised returns of up to 40% within 24 hours. His investment app even showed an unbelievable “profit” of RM2.63 billion — but when he tried to withdraw the money, his account was blocked. 

The lesson?

Money appearing on an app is not the same as money sitting safely in your bank account.

#4 – “Only 5 slots left!”

Another major warning sign is urgency.

“You must invest today.”

“Last five slots.”

“Special offer for selected people.”

“Returns start tomorrow.”

“Don’t tell too many people.”

Aiyoh.

Whenever I hear something like this, I become even more suspicious.

Why?

Because good investments don’t normally need you to make a decision in five minutes.

The Securities Commission Malaysia continues to update its Investor Alert List with unauthorised websites, companies, products and individuals. In August 2026 alone, the list included several entities such as KCEX Fintech Limited, Golden Entry Prime and Pelaburan Sy Success. The SC also reminds investors that its list is not exhaustive. 

So don’t simply say:

“I checked and the company isn’t on the list, therefore it must be safe.”

No. Absence from the list does not equal approval.

You still need to check whether the person or company is properly licensed and whether the investment itself is legitimate.

#5 – What would I do?

Simple.

I would slow down.

I would ask:

1. What exactly is the business?
2. How does the business make money?
3. Who regulates it?
4. Is the company properly licensed?
5. Where is my money actually going?
6. Who holds my money?
7. Can I withdraw my capital anytime?
8. What happens if the investment loses money?
9. Is the return guaranteed?
10. Why do they need my money instead of borrowing from a bank?

That last question is particularly interesting.

Imagine someone tells me:

“Charles, give me RM1 million and I guarantee you 12% a year.”

My first thought would be:

“If this business is so fantastic, why aren’t the banks fighting to lend you the money?”

There may be perfectly legitimate answers.

But I want to hear them.

#6 – Don’t confuse investing with gambling

I invest in property.

I also invest in other assets.

And I know that sometimes investments go up.

Sometimes they go down.

That’s normal.

So when someone offers me high returns with no risk, I don’t think:

“Wow, what a great opportunity.”

I think:

“What am I missing?”

SO, IS 1% EVERY MONTH A SCAM?

Not necessarily. That’s important.

There are legitimate investments that can potentially generate returns greater than 12% a year.

But if someone is promising 1% every month, consistently, with little or no risk, then yes, I would treat it as a major red flag until proven otherwise.

And the higher the promised return, the more questions I would ask.

The Securities Commission’s Investor Alert List exists precisely because unauthorised investment offerings continue to appear in Malaysia. 

For me, the biggest lesson is very simple.

Don’t let greed make you hurry.

The scammer wants you to think:

“If I don’t invest today, I will miss the opportunity.”

I want you to think:

“If this is genuinely a good investment, it should still be a good investment after I spend three days checking it.”

That’s the difference.

And if someone becomes angry because you want to check?

If they pressure you?

If they tell you not to tell your spouse?

If they say your friend doesn’t understand?

If they insist you transfer money immediately?

Walk away.

Your RM10,000, RM50,000 or RM500,000 took you years to accumulate.

Don’t lose it because someone promised you 1% a month.

Because sometimes the best investment decision you can make is simply:

“No thank you.”

Happy checking.

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Sources

• Original Kopiandproperty article — “If someone offered you 1% return every month, is this a scam?” — the original article, including the personal observations, scam warning signs and the case of the retiree who lost RM473,000. Original Kopiandproperty article 
• Bank Negara Malaysia — Illegal Deposit Taking / Scam Warning — official guidance warning about guaranteed or unusually high returns with little risk. Bank Negara Malaysia scam guidance 
• Securities Commission Malaysia — Investor Alert List, 3 August 2026 — latest examples of unauthorised investment entities and SC’s reminder that the list is not exhaustive.
• Securities Commission Malaysia — Investor Alert List, 23 June 2026 — further examples of potential clone entities and the importance of checking suspicious capital-market activities.