Investment scams in Malaysia surged to 9,603 cases last year, causing losses of RM1.47 billion, with social media as the primary hunting ground.
KUALA LUMPUR: Malaysians lost a staggering RM1.47 billion to investment scams last year. The Royal Malaysia Police recorded 9,603 such cases, identifying five main fraudulent methods.
Bukit Aman Commercial Crime Investigation Department director Datuk Rusdi Mohd Isa outlined the common tactics. These include fake clone companies, promises of quick high returns, Ponzi schemes, love scams, and bogus cryptocurrency platforms.
Syndicates typically lure victims through social media platforms like Facebook and Instagram. They then move conversations to messaging apps such as WhatsApp or Telegram before adding targets to fake investment groups run by supposed professional traders.
Victims are shown fake profits on manipulated trading platforms. They are then prevented from withdrawing funds and asked to pay extra processing fees, taxes, or other charges.
Rusdi noted a growing trend in the use of cryptocurrencies like USDT (Tether). Victims are often instructed to send funds directly to syndicate-controlled digital wallets via illicit platforms.
He explained the mechanics of a classic Ponzi scheme. Initial profits paid to early investors are funded solely by money from new recruits until the scheme inevitably collapses.
The scale of these non-existent investment scams has risen sharply. Cases jumped from 6,337 with RM848.6 million in losses in 2024 to last year’s higher figures.
Police have already recorded 2,204 cases with RM246.7 million in losses between January and March this year. This proves the crime is both ongoing and deeply worrying.
Stock investment scams accounted for the highest number of cases. They were followed by fraudulent schemes involving cryptocurrency and gold investments.
Victim profiling shows those aged 31 to 50 are the most affected group. Individuals between 41 and 50 years old are particularly targeted.
This is followed by the 51-60 and 21-30 age brackets. The data indicates that working-age groups active in finance are the most vulnerable.
Private sector workers ranked highest among the victims. They were followed by civil servants and the self-employed.
Rusdi urged the public not to be easily swayed by offers promising high returns quickly. He advised conducting thorough checks before committing any funds.
The public is also reminded not to make payments to suspicious accounts. This includes accounts belonging to unregistered or unverified individuals.
