Recently I have received a lot of complaint about Island Red Café investment as they claimed that they stopped receiving the vouchers and cash payouts earlier this year. After careful investigation by police, it’s officially announced that this business is a scam.
Here, I would like to remind all of you, before making any type of investment, you need to do your own research and don’t fully trust their business plan as they may fool you around. For example, in this situation, you need to see the Island Red Café environment first, and taste their foods & service. Check back my previous articles about Why I Don’t Dare To Invest?
Island Red Café Is A Scam Business
Island Red Cafe collects members RM6, 000 each and promised will give 5% return every month and even give you a name in the black & white agreement as a shareholder but what’s the point if they run away? In fact, you cannot do anything; you just can go to their shop and take all their business equipment such as the furniture (table, chair, fan…) after they declared themselves bankrupt.
Island Red Café Business Plan – Ponzi Scheme
I think nowadays Malaysia quite popular with those making easy money opportunities, which come up with various creative ways to attract the public to invest. Many of them operate their business like Ponzi scheme, which made no or just little actual investments from people money; the earlier investors would normally get some returns, compared with the investors who join later.
Many of those who are employed as agents with these businesses do not think such schemes are illegal. They just know to think about how could they earn money from the business plan only. But, they never think about how the business is going to generate money and what is their company’s contingency plan if their business fails in the middle way.
Illegal Business Operate Anywhere In Malaysia
I could see that there are a lot of illegal business operate anywhere in our country. This is because the Malaysia government did not put their effort or there are no strict rules set by authorities to ensure that such business are legal. The most headache part is now it’s becoming somewhat of a trend already.
Those scammers can take this opportunity to navigate their way around existing laws and capitalize on their marketing strategies before the law catches up with them. So, I advise you that it’s better to think twice before making any investment especially those new businesses that we never heard before.