Why we should never trust titles alone

 

 If someone introduces himself as a Datuk, Datuk Seri and Tan Sri, the instinct is often to trust. In Malaysia, titles still carry weight.

They signal success, credibility and social standing. Yet, a recent case reminds us that prestige can also be a carefully constructed mask.

MACC has detained a businessperson in his 60s bearing the title Tan Sri, suspected of masterminding a large-scale investment fraud involving losses estimated at more than RM300 million.

A woman in her 50s, believed to be a director of a related company, was also arrested. The scheme is said to have operated for nearly two years and involved investors from both within and outside the country.

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At first glance, the operation appeared legitimate. The suspect’s title, corporate, religious profile and network of senior associates created an image of professionalism and authority. Investors were offered various instruments presented as compliant, low risk and capable of delivering steady returns within a fixed period.

The presence of board members and senior executives reinforced the impression that this was a regulated and well-managed venture.

In reality, the structure was built on confidence rather than substance.

Psychological engineering

Preliminary investigations suggest that much of the money collected was never channelled into genuine investment activities as promised.

Instead, funds were allegedly diverted to cover other financial obligations, sustain cash flow pressures, or finance personal and operational spending.

Early “returns” paid to some investors may have been recycled from later inflows, a classic tactic to preserve trust and attract new capital.

This is not a case of sophisticated financial engineering. It is a case of psychological engineering.

Investors were not misled by complex documents. They were persuaded by status, by consistency of narrative, and by the comfort of dealing with people who appeared important and well-connected. The title did the heavy lifting. The reputation closed the deal.

This is a warning the public should take seriously.

Deeper issue

High returns without real risk do not exist. Promises of stable profits in uncertain markets are not signs of opportunity. They are warning signals. When investments rely more on personality than on transparent fundamentals, danger is already present.

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The case also highlights a deeper issue in our society. We are still too easily impressed by rank and honour. We equate titles with integrity. We assume success equals trustworthiness. In doing so, we lower our own defences.

Fraud today rarely comes dressed as deception. It comes dressed as credibility. This episode should not only lead to prosecutions. It should lead to a cultural correction.

Trust must be earned through evidence, not inherited through titles. Due diligence must replace deference and investors must learn that the most dangerous schemes are often those that look the most respectable.

In finance, as in life, the absence of visible risk does not mean the presence of safety. - Mkini

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MAHATHIR MOHD RAIS is a former Federal Territories Bersatu and Perikatan Nasional secretary. He is now a PKR member.

The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT