KUALA LUMPUR: As of the third quarter of 2024, Securities Commission Malaysia (SC) has received 3,380 complaints and enquiries on scams and unlicensed activities, an increase of 28% compared to last year.
SC executive director and general counsel Yew Yee Tee stated that in 2023, the regulator received 3,262 public complaints and enquiries on various scams and unlicensed activities, a 321% increase from that in 2019.
She said these numbers involve new and sophisticated fraudulent schemes using deepfake technology and ever changing modus operandi.
“Scams and unlicensed activities continue to be a growing concern,” Yew said at last Friday’s launch of the SC’s annual flagship investor education fair, InvestSmart® Fest 2024, in conjunction with World Investor Week 2024.
Yew said the positive side to this is that it also sees greater awareness and scepticism among the public where many of the complainants and enquirers have not fallen victim to the scams, compared to previous years.
She said most scams share a common element – the use of mule bank accounts.
“Mule accounts involve instances where victims are persuaded to rent out their bank accounts which are used by scammers to illegally receive and move ill-gotten funds. Therefore, I advise you to never allow your bank accounts to be used as mule accounts. The monetary reward offered is not worth the while.”
Since 2022, Yew said, the SC has acted against 19 mule account holders for receiving proceeds of unlawful activities, where enforcement actions were taken including imposition of fines in hundreds of thousands of ringgit.
Yew pointed out that this year, the Penal Code (Amd) Bill 2024 was passed in the Dewan Rakyat to combat online crimes using mule account for online fraud where, among others, mules are now being liable to fines of a minimum RM10,000 and jail terms of at least one year if found guilty.
“Beyond such enforcement actions, these individuals would also face other consequences such as not being allowed by banks to maintain or open bank accounts resulting in these individuals facing challenges in finding work or operating a business, both of which requires a bank account,” she added.
In combating scams and unlicensed activities, Yew said, the SC adopts a multiprong approach consisting of investor awareness and education, monitoring, surveillance and enforcement.
“Despite these regulatory interventions by the SC, the key challenge has always been how to get the right warnings to the right people and before they become victims as most times those who need warnings most aren’t seeing these warnings,” Yew said.
