Beware of Scams - INVESTOR EMPOWERMENT | Securities Commission Malaysia

BEWARE OF SCAMS

Scammers targets everyone and takes advantage of people when they are vulnerable. Individuals of all backgrounds, ages, education, and income levels across the nation are becoming victim of scams.

Scammers are becoming increasingly sophisticated with their tactics and are constantly looking for new ways to prey unsuspecting and vulnerable individuals. They are using various online and offline mediums to reach out to the members of the public and are capitalising on new technology to create schemes that are attractive and “irresistible”. 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:

Tidak akan rugi (investment with guaranteed profit)

Indah khabar dari rupa (too good to be true)

Peluang hanya sekali (offer for a limited time only)

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.

Related Media Releases
14 August 2023
SC Alerts Public on Unauthorised Usage of its Name and Logo
The Securities Commission Malaysia (SC) warns the public, specifically investors, about certain entities/companies’ unauthorised use of the SC’s name and logo in promotional materials for their investment products.
26 May 2023
SC Promotes Investor Education and SME Financing in Penang
The Securities Commission Malaysia (SC) held a number of events in Penang this week as part of its efforts to increase investor education in the northern region as well as raise awareness on capital market financing opportunities.
22 May 2023
SC Takes Enforcement Action against Huobi Global for Illegally Operating DAX in Malaysia
The Securities Commission Malaysia (SC) has taken action against Huobi Global Limited, and its Chief Executive Officer Leon Li for operating a digital asset exchange (DAX) in Malaysia without registration
12 December 2022
Former Company Officers Jailed, Fined RM2 Million Each for Unlicensed Derivatives Dealing
The Kuala Lumpur Sessions Court today convicted two former officers of Jalatama Management Sdn Bhd (Jalatama) for carrying out a business of dealing in derivatives, a regulated capital market activity, without a licence. The offences were committed during the period between July 2011 to September 2013.
14 November 2022
Former Company Director Jailed for Unlicensed Fund Management Activities
The Johor Bahru Sessions Court today convicted Uzir bin Abd Samad, a former director of UAS Bistari Management Sdn Bhd, with three offences relating to unlicensed fund management activities and wrongfully holding himself out as a licensed person.
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Most Common Investment Scams
Click image to view poster
Click image to view poster
Click image to view poster
Characteristics of Current Investment Scams Perpetrated
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”;
Schemes are marketed via social media platforms such as Telegram, Facebook, Whatsapp and Instagram;
Request for money to be deposited into a personal bank account or bank account of an unrelated entity;
Schemes are promoted as an “Limited Time Only” opportunity;
Get victims to part with more money in the pretext of income tax payment and miscellaneous fees;
Investments are disguised as “Shariah- compliant” to attract investors;
Use of fake testimonies to lend credence and show that investors have gained the promised profit within the stipulated time;
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);
Use credentials of celebrities and prominent personalities to entice investors; and
Pose as legitimate entities by using names, logos, credentials, website and other details of legitimate entities to promote bogus investment schemes.
12 Ways to Protect Yourself
Here is what you can do to avoid being scammed. Always:
Be cautious of investments offered via social media platforms such as Facebook, Telegram, Instagram and WhatsApp;
Never deposit your money into a personal bank account or bank account of an unrelated entity;
Payments for the purposed of investment should only be made to the official bank accounts of licensed or registered by the SC;
Always check the SC’s Investor Alert List before investing. The SC’s Investor Alert List of unauthorized websites, investment products, companies and individuals;
Deal only with individuals/entities who/that are registered or licensed by the SC;
Check PDRM's "Semak Mule" portal to verify whether the bank accounts and telephone numbers have been reported to the police;
Don’t invest just because the scheme/product claims to be endorsed by celebrities/prominent personalities;
Check with the relevant authorities before investing/depositing any monies with any person or company. You can channel your inquiries to the SC, Bank Negara Malaysia, the Ministry of Domestic Trade and Consumer Affairs, CyberSecurity Malaysia, Companies Commission of Malaysia and others;
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;
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;
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; and
Secure your personal information (MyKad number, address, bank details, existing investment details, etc.).;
Always exercise extreme caution when being offered an investment scheme. Take precautionary steps to protect yourself from being a victim of scams.

What should you do if you have been scammed?

Do not panic;
Cancel future transactions. Do not make any further payments with the hope that you will get your money back;
Keep records of all information pertaining to your investment (e.g. name of entity/scheme, details of entity and individuals involved, website, social media account, promotional materials, payment slips, receipts and record of conversations); and
Make a police report and file a complaint with the relevant authorities.

Guide on Malaysian authorities you can report to:

Authority	Bank / Authority Impersonation	Loan Scam / Mule Account Scam / ATM Card Rentals / Forex / Deposit Taking	Investment Scams (Capital Market Products)	e-Commerce Scams / Multi-Level-Marketing (MLM) / Referral Scheme / Direct Selling	Job Scam / Cheating / Cryptocurrency Mining / Love Scam / Others
Royal Malaysia Police (RMP)	X	X	X	X	X
Bank Negara Malaysia (BNM)	X	X
Securities Commission Malaysia (SC)	X		X
Bursa Malaysia Berhad	X		X
Ministry of Domestic Trade and Consumer Affairs (KPDNHEP)				X

Report a Scam
Contact the SC via:
Email to [email protected];
or Call our Aduan hotline at +603 6204 8999 (9:00am – 6:00pm, Monday to Friday).

For more information on how to report a scam, refer and click here.
Other Resources
9 June 2022
Protecting yourself from investment scams
4 June 2022
Scam Pelaburan | Sibuk kejar kejayaan, akhirnya jadi 'papa kedana'
2 June 2022
Statistik kes skim penipuan & skim pelaburan tanpa lesen
2 June 2022
Scam Pelaburan | Ramai 'termakan' janji manis di Telegram
25 April 2021
Falling for ‘high returns’ promise
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
Waspada pelaburan untung segera
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.
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