Editorial: Need for protection from fraud

Here’s an editorial from the Jordan Times today on the rise of fraud by some investment companies and institutions in Jordan.

There is, it seems, a rise in the number of fraudulent activities by financial and investment institutions operating in the country.

Matrix Company for Financial Investment, which is accused of manipulating huge amounts of money belonging to thousands of unsuspecting Jordanian investors, is one of several financial companies that were referred to the State Security Court recently.

Their number seems to grow and many unwary Jordanian investors could suffer financial losses, sometimes substantial, including their lifetime savings.

While there are laws against fraud in the country, they don’t seem adequate enough to prevent such occurrences. This means that both government and Parliament should hasten to adopt new legislation specifically designed to deal with modern fraudulent financial activities.

In the wake of the Matrix case, another investment company in Irbid was reportedly trying to deceive people into believing that they would get high returns on their money, trying to play on international markets.

Prosecuting the CEOs of these companies may solve the problem for the time being and offer an opportunity for investors to recover some of their losses, but this will not do in the future.

Insolvency and failing banks and financial institutions worldwide should awaken our concerned authorities to the urgent need for more effective methods to combat fraud in finance and investment dealings.

People might not be sophisticated enough to protect themselves against fraudulent activities, so the government has the duty to step in, and fast, to protect them.

There is much that can be learned from the cases brought to light so far, and this should offer the basis for future preventive actions by the Central Bank of Jordan and other concerned governmental institutions in the country.

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