SC: Clone Firm Scams On the Rise
29 May 2020   |   Kuala Lumpur

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.

The fraudsters will use names, logos, credentials, websites and other details of a legitimate capital market intermediary to promote bogus investment schemes via social media channels such as Facebook, WhatsApp and Twitter, promising extraordinarily high returns with little risks. 

The victims are often instructed to deposit monies into personal bank accounts of individuals who claim to represent a legitimate licensed entity, and/or a corporate account.

A number of capital market licensed entities have lodged reports on the cloning of their corporate identities by unknown persons or organisations. Any person who engages in securities fraud, holds himself out as a capital market intermediary or carries out any regulated activities without a valid licence or registration from the SC, commits an offence under the Capital Markets and Services Act 2007 and if convicted, may be punished with imprisonment of up to ten years and fined. 

The SC reminds investors to always exercise due caution when considering investment opportunities, especially those promising extremely high returns with little or no risks. Investors are also encouraged to verify the status of individuals or companies offering investing opportunities via the SC website at:

(a) www.sc.com.my/regulation/licensing/licensed-and-registered-persons and

(b) www.sc.com.my/development/digital/list-of-registered-recognized-market-operators

Members of the public who suspect that they have been approached by unauthorised firms or individuals offering investment opportunities may lodge a report with our Consumers and Investors Department at 603 6204 8999 or email [email protected].

SECURITIES COMMISSION MALAYSIA
SC-World Bank-IOSCO Asia Pacific Hub Conference 2019: Enhancing Financial Inclusion through Islamic Finance and FinTech
(From left to right):
  1. Abayomi A. Alawode, Head of Islamic Finance, Finance, Competitiveness and Innovation, The World Bank Group
  2. Datuk Syed Zaid Albar, Chairman of the Securities Commission Malaysia (SC)
  3. Dr. Firas Raad, Country Manager for Malaysia, East Asia and Pacific, The World Bank Group 
  4. Datuk Zainal Izlan Zainal Abidin, Deputy Chief Executive of SC
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