What is the habit of asking questions?
The habit of asking questions means wanting clear answers to a few specific questions before you put money into any investment or “earning opportunity”, and checking those answers yourself. Whoever makes the offer, a relative, a friend, a colleague or someone well known, the questions stay the same.
Asking questions isn’t rude or distrustful; it is taking responsibility for your hard-earned money. The people behind an honest offer usually take time to explain, show you the paperwork and give you time to think.
Say an acquaintance tells Parveen, “We have a group paying 10% a month; I’ve been getting it myself for six months.” Parveen asks, “Where exactly is the money invested? Which licensed institution is behind it? Can you show me the agreement?” The reply: “You can’t ask so many questions; if you don’t pay today, the slots will be gone.” It was the way the questions were dodged, more than any answer, that put Parveen on guard. This is an imaginary example.
Why it matters to an investor
- Fraud survives on unquestioning trust: most scams fall apart when someone asks “where is the profit actually coming from?”
- Even honest offers need understanding: lawful investments have risks, costs and withdrawal conditions too. Without asking, you get surprised later.
- It buys time: asking questions naturally slows the decision down and eases the pressure to rush.
- It helps if you ever need to complain: knowing who said what, in which institution’s name and on what paper gives you evidence if something goes wrong.
Why we don’t ask
- Relationship pressure: when a relative or someone senior suggests it, asking questions feels disrespectful.
- Fear of looking foolish: staying quiet because “everyone else seems to get it”.
- Other people’s success stories: seeing someone you know getting paid makes questions seem unnecessary. Yet in a Ponzi scheme the early people really are paid, out of later people’s money.
- Pressure of time: hearing “today is the last chance” leaves no time to think. That pressure is often created on purpose.
Questions to ask of any offer
The US securities regulator, the SEC, publishes a list of five core questions for investors: is the seller licensed, is the investment registered, how do the risks compare with the potential rewards, do you understand it, and where can you turn for help. In a Bangladeshi setting they come out roughly like this:
- Who regulates it? What is the institution’s full name, and which regulator (BSEC, Bangladesh Bank, IDRA, MRA) licenses it? Look it up yourself on the regulator’s own website.
- Where does the profit come from? Exactly which business or asset is the money put into, and how does it earn that much? If you can’t explain the answer to someone else in your own words, you don’t understand it yet.
- What is the risk? In the worst case, how much could I lose? “There’s no risk” is itself the biggest warning sign.
- How do I get my money out? How long does it take, on what terms, at what cost? Is there a written agreement?
- What does it cost? Fees, commission and tax, all together. How does the seller get paid?
- Where do I go if something goes wrong? Which regulator can I complain to?
Answers that should make you cautious
The SEC’s own investigation report into Bernard Madoff’s fraud says that between 1992 and 2008 the agency received six substantive complaints about him, yet nobody followed the right questions through. The warning signs it lists include unusually steady returns with almost no losses, secrecy about how the money was made, and a trading strategy nobody else could replicate.
- Dodging or getting annoyed: “You can’t ask so many questions”, “If you don’t trust us, don’t bother.”
- Vague or overly complex answers: a “special formula”, “international trading”, a “secret strategy”, but no detail.
- Only words or screenshots instead of paperwork: no registered name, licence number or agreement.
- Answering questions with other people’s success stories: “so-and-so is getting paid” is not an answer, just bait.
Worked example
- Say an app promises “2% profit every day”. Ask: what does that come to in a year?
- With profits reinvested, over 365 days Tk 10,000 becomes 10,000 × 1.02^365, or about Tk 1,37,70,000: roughly 1,377 times in one year.
- Next question: which lawful business anywhere earns this much, steadily? And if one really did, why would it want Tk 10,000 from strangers?
Result: one simple calculation and two questions show the claim is impossible. The numbers are only an example; convert any “daily” or “monthly” profit claim into a yearly figure and see.
Common mistakes
- Not asking because someone you know and trust made the offer. Much fraud spreads through acquaintances, often without them realising it.
- Treating a certificate or link the promoter shows you as proof of a licence, instead of checking the regulator’s own website.
- Stopping asking after getting a small amount back the first time. Small early payouts are often a tactic to take larger sums.
- Saying “fine” without understanding. If you don’t understand, “no” or “not yet” is a complete answer.
Before handing over money, ask: who regulates it, where does the profit come from, what is the risk, how do I get my money out. No clear answers, no money.