Datuk Seri Ramli Mohamed Yoosuf, director of the Federal Commercial Crime Investigation Department (CCID), said that a total of 4,435 cases were reported in Malaysia between January and October, and the financial losses of the victims amounted to RM364.5 million.
“This accounts for 20% of the total losses in commercial crime cases this year,” Ramli said at a press conference at Saitan headquarters on November 20. He said that compared with the same period last year, the number of investment fraud cases this year increased by 1,577, an increase of 54.1%, while the loss of funds soared by 93.6%. Meanwhile, he said a total of 540 cases have been prosecuted so far.
Ramli noted that most investment scams are conducted online through social media platforms.
Ramli said a study on the targets of investment fraud syndicates showed that most victims this year were between the ages of 31 and 40, with 1,099 victims in this age group, followed by those between 41 and 50 (953). 21 to 30 years old (835 people), 51 to 60 years old (815 people), over 60 years old (609 people) and 15 to 20 years old (124 people). The largest number of victims was in the private sector, with 1,880 people affected, followed by 298 civil servants, 762 housewives, and 514 retirees.
Ramli said investment scams have become more common this year. “While the authorities are playing their part, I urge the public to remain vigilant against any investment proposals, especially those that promise high returns and quick returns. Check with the relevant authorities for any investment opportunities. If an investment proposal seems too good to be true , then take it with a grain of salt.”
Investment fraud cases in Malaysia surged by 54.1% this year, with victims losing more than RM360 million
He said that based on a discovery by the Global Anti-Fraud Organization (GA-SO), the police learned of a new type of scam - the love investment scam. The modus operandi is similar to a romance scam, but the scammer does not directly ask the victim for money. He would act as a mentor, guiding the victims in their investments. After gaining the victim's trust, the scammer will ask the victim for money, purportedly for investment. Eventually, the victim will be left alone.
On another issue, he said scammers not only exploited mule account holders but also used shell companies and fake businesses to transfer their ill-gotten gains. "So far we have identified 86 shell companies and 70 suspicious businesses exploited by fraud syndicates."
Ramli also cited an example of an investment scam conducted in the name of the Malaysian Investment Development Authority (Mida) in Malacca on November 9. "The victim suffered a loss of RM585,700 after joining an investment scam that promised high returns within three to six hours of investing."
"Preliminary investigations revealed that the group has been operating through social media sites since October last year. They offered (alleged) investments ranging from RM300 to RM2,000." Ramli said the police had received 28 reports involving Damage of RM1.2 million.
