BEWARE OF SCAMS DURING COVID-19 CRISIS
There are many unscrupulous parties that are waiting to take advantage of unsuspecting individuals during this difficult times. Scammers tend to capitalise on fears and hardship stemming from major crisis like Covid-19 outbreaks to manipulate vulnerable and unsuspecting members of the public.
Scammers are becoming increasingly more sophisticated with their tactics. Many schemes come disguised as different types of business opportunities such as investment schemes for various types of products or services, designed to swindle your hard-earned money.
Members of the public are encouraged to be more vigilant when making investment decision. Always remember not to fall into the following promises:
T
Tidak akan rugi (investment with guaranteed profit)
I
Indah khabar dari rupa (too good to be true)
P
Peluang hanya sekali (offer for a limited time only)
U
Untung besar (huge returns/profit)
Remember, an informed investor is a protected investor.

The Securities Commission Malaysia (SC) continues to be on the alert for illegal investment schemes.
  • Characteristics of Current Scams Perpetrated
    1. Promote non-existent investment schemes promising high returns with little or no risk within a short span of time. For example, “Invest RM200 and get RM10,000 within 24 hours”.
    2. Products are marketed via social media platforms such as Facebook, Whatsapp and Telegram;
    3. Request for money to be deposited into a personal bank account.
    4. Get victims to part with more money in the pretext of income tax payment and miscellaneous fees
    5. Investments are disguised as “Shariah compliant” to attract investors.
    6. Use fake certificates, invoices and payment receipts from authorities such as the Securities Commission Malaysia (SC), Companies Commission of Malaysia (CCM), Bank Negara Malaysia (BNM), Inland Revenue Board of Malaysia (LHDN).
    7. Clone Firm Scams: Clone firms pose as legitimate entities by using names, logos, credentials, website and other details of legitimate entities to promote bogus investment schemes using the same techniques as above.
  • 12 Ways to Protect Yourself
    Here is what you can do to avoid being scammed.
    1. Check SC’s investor alert list before investing.
    2. Always deal with authorised companies / individuals. Check the SC’s register of licence holders and list of registered market operators.
    3. Be cautious of investments offered via social media platforms.
    4. Never deposit your money into personal bank accounts.
    5. Payments should only be made to official bank accounts of companies authorised by authorities.
    6. Check PDRM’s “Semak Mule” portal to verify whether the bank accounts and telephone numbers have been reported to the police.
    7. Ask questions and request for important information – Scammers rely on the fact that most people do not ask for the right information before they make an investment decision. Ensure you know who you are dealing with, the individuals behind the company and understand its products or services before investing.
    8. Don’t be pressured or rushed into making an investment decision. Give yourself time to do research and find out more about the product before parting with your money.
    9. Be sceptical of any investment opportunity that is not in writing. Request relevant documentations on the product and the company so that you can ascertain the legality of the investment opportunity offered.
    10. Secure your personal information (MyKad number, address, bank details, existing investment details, etc.).
    11. If an investment has already been made, keep copies of all documents pertaining to your investment and your communications with the person you dealt with and the company concerned.
    12. If in doubt, contact SC at [email protected] or 03-6204 8999.

    Always exercise extreme caution when being offered an investment scheme. Take precautionary steps to protect yourself from being a victim of scams.

RESOURCES
  • SC Media Releases

    30 July  2021

    The Securities Commission Malaysia (SC) today announced enforcement actions against Binance for illegally operating a Digital Asset Exchange (DAX). Under Sections 7(1) and 34(1) of the Capital Markets and Services Act 2007, all DAX operators must be registered as Recognized Market Operators (RMO) by the SC.

    13 April 2021

    The Securities Commission Malaysia (SC) has reprimanded Remitano for operating a digital asset exchange (DAX) in Malaysia without authorisation from the SC. The entity has also being included on the SC’s Investor Alert list.

    31 March 2021

    The Securities Commission Malaysia (SC) is investigating a syndicate suspected of running five unlicensed investment schemes, including two clone firm schemes, that had duped hundreds of investors of over RM7 million into unlicensed investment activities.

    29 January 2021

    The Securities Commission Malaysia (SC) and Bursa Malaysia Berhad (Bursa Malaysia) are closely monitoring the local stock market in light of the current price surge of selected stocks in the US markets, fuelled by social media chatrooms against short-sellers.

    22 November 2020

    The Securities Commission Malaysia (SC) had to date, following the issuance of the Guidance Note on Provision of Investment Advice on 30 December 2020, directed seven operators, comprising entities and related individuals, to cease and desist from undertaking all activities in relation to unlicensed investment advice. Providing investment advice is a regulated activity that requires a licence under the Capital Markets and Services Act 2007 (CMSA). Any person carrying on a business of giving investment advice without a licence commits an offence under the CMSA which is punishable with a fine not exceeding RM10 million or imprisonment not exceeding ten years, or both.

    9 November 2020

    The Securities Commission Malaysia (SC) would like to caution members of the public of a fake donation letter purportedly from “Badan Kebajikan Thalassaemia Malaysia (944520K)” seeking donation and falsely naming the SC Chairman as its advisor.

    5 November 2020

    The Securities Commission Malaysia (SC) today cautioned the public on the sharp increase of clone firm scams this year. The scams are perpetuated by companies that fraudulently impersonate a legitimate entity, including misusing the name and logo of a public listed company (PLC) to dupe investors and to solicit funds.

    23 October 2020

    The Securities Commission Malaysia (SC) is holding its annual flagship investor education event, InvestSmart® Fest, from 23 to 25 October 2020. This is the seventh instalment of the InvestSmart® Fest and for the first time, held virtually.

    6 October 2020

    Financial Education Network (FEN) today launched the Financial Literacy Month (FLM 2020) with the theme “Empowering Financial Freedom”. During the FLM 2020, various initiatives and programmes by FEN members and partners will be conducted as part of on-going efforts to raise the level of financial literacy among Malaysians.

    8 July 2020
    The Securities Commission Malaysia (SC) today cautioned the public against the usage of Crypto Automatic Teller Machines (Crypto ATMs).

    13 June 2020
    The Kuala Lumpur Sessions Court yesterday convicted Afkariah Md Norani of four charges under section 179(b) of the Capital Markets and Services Act 2007 for defrauding four individuals and sentenced her to imprisonment for a period of six months and a total fine of RM4 million.

    29 May 2020
    The Securities Commission Malaysia (SC) today issued a warning to the investing public on the rise of clone firm scams where a fraudulent company will set itself up to look like a capital market intermediary that is licensed or registered with the SC, in order to deceive investors.

    24 April 2020
    The Securities Commission Malaysia (SC) today cautions the public to be on the alert for any individuals or entities that may try to take advantage of the latest developments of Covid-19 to entrap them into investing in illegal investment schemes.
  • Other Highlights
    25 April 2021
    The challenging economic times brought on by the Covid-19 pandemic were among reasons why some investors fell for investment scams that promised high returns within a short time, says the Securities Commission (SC).

    25 April 2021
    Suruhanjaya Sekuriti Malaysia (SC) mendedahkan taktik penipuan pelaburan dan aktiviti skim pelaburan tidak berlesen menerusi media sosial semakin membimbangkan. Sumber SC berkata, kes yang dilaporkan meningkat 158 peratus dengan 548 aduan diterima pada tahun lalu berbanding 212 aduan pada tahun 2019.

    27 January 2021
    The FCA is issuing a warning to the public as reports of ‘clone firm’ investment scams increased by 29% in April 2020 compared to March, when the UK went into its first lockdown. Action Fraud data reveals consumers reported losses of more than £78 million between January-December 2020. Throughout 2020, consumers reported average losses of £45,242 each on average when investing with fraudsters imitating genuine investment firms. The data has been released as part of the FCA’s ScamSmart campaign, alongside advice to help investors avoid fake firms and protect their hard-earned cash.

    14 December 2020
    The SEC has recently experienced a significant uptick in tips, complaints, and referrals involving investment scams. The SEC’s Office of Investor Education and Advocacy urges investors to be on high alert in order to protect themselves and others from becoming victims of investment fraud.

    5 November 2020
    Mark Damion Kawecki, of Frankston, Victoria, has been convicted and fined $30,000 in the Melbourne County Court for engaging in dishonest conduct related to attempts to artificially satisfy the minimum spread requirement for companies seeking to be admitted to the ASX.

    26 October 2020
    The Federal Court has ordered the winding up of unlicensed financial services businesses, Secure Investments Pty Ltd (Secure Investments) and Aquila Group Pty Ltd (Aquila Group).

    15 October 2020
    E-Crime Squad detectives have arrested a man as part of an ongoing investigation into a number of financial investment scams.

    11 June 2020
    The Securities and Exchange Commission has filed an emergency action and obtained an asset freeze against five individuals and six offshore entities for an alleged fraudulent scheme that generated more than $25 million from illegal sales of multiple microcap companies’ stock, including four that were the subject of recent SEC trading suspension orders: Sandy Steele Unlimited Inc., WOD Retail Solutions Inc., Bioscience Neutraceuticals, Inc., and Rivex Technology Corp.

    17 June 2020
    The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to warn investors about investment frauds involving claims that a company’s products or services will be used to help stop the coronavirus outbreak.

    10 April 2020
    The SEC’s Office of Investor Education and Advocacy (OIEA) and the Division of Enforcement’s Retail Strategy Task Force are issuing this Alert to educate Main Street investors about current investment frauds, including scams related to the Coronavirus (COVID-19) pandemic.
How to Report a Scam
Aduan hotline: +603 6204 8999 (9.00am-5.00pm Monday to Friday).
For more information on how to report a scam, click here.
How to Avoid Being Scammed?
Clone Firm Scams
Do's & Don'ts of Investing

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