Kutu investment is basically an old school forced savings plan whereby a group of people pools money together and then the pool money for the month is distributed to different members each month. Traditionally, the people who participate in the kutu scheme all know each other or are blood related somehow. The most basic form of Kutu does not involve paying any interest/profits, it is just a forced savings plan.
There are scammers collecting money from the public telling the public that they are putting money into a Kutu investment fund and promising 10% and above returns. After money is collected, the scammers will run away leaving victims with nothing.
The illegal kutu investment scheme from Johor called Saving Extra Sapiza was running for 2 years before it collapsed. Investors who put money into the scheme were told that they were given extra profit which purportedly was from funds of members (players) who could not continue with the scheme and were booted out of the scheme, hence the scam is sometimes known as scam Kutu Ganti aka Kutu Replacement Scam.
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