Beware of Impostors Targeting Spot Forex Trading Victims

Kuala Lumpur, 20 February 2004

The Securities Commission (SC) warns the public to beware of a man impersonating himself as an SC officer to get money from the public. The impostor is believed to target victims of spot forex trading scams to whom he promises refunds of monies lost in these illegal trades.

The SC has not and does not authorise any of its officers to solicit monies. Members of the public are to contact the Police or the SC immediately, if they have been so approached. The SC Complaints Department tel. no. is 03- 6204 8999 or email [email protected].

The SC was alerted to this impersonation by a member of the public who had been approached by a Encik Zainal, who claimed to be an SC officer. Encik Zainal had told him that Bank Negara Malaysia (BNM) could return the losses he had incurred from forex trading, provided he first deposit some money into a bank account, before payment would be made to him. The member of the public was told that the bank account belongs to a Maimunah, allegedly an auditor with the SC.

It is feared that this impersonation could be a spin-off scam to get even more money from victims who had lost thousands of ringgit in illegal futures trading scams.

The SC urges all victims to lodge reports to the SC Complaints Department if they are approached with such requests by unknown parties.

Number of spot forex/commodity victims have fallen, illegal futures operators have been prosecuted

The SC had run a two-year intensified campaign, from 2002-2003, to educate the public against investing with illegal futures traders who promised high returns. The campaign had yielded successful results with the number of complaints falling by 71.2%, from 236 complaints in 2002 to 68 in 2003.

The SC has charged 11 persons and one company for operating illegal futures markets, out of which, 5 persons have pleaded guilty to the offence and were sentenced to fines ranging between RM100,000 to RM500,000 each. The cases involving the remaining 6 persons and the company are pending trial.

The SC strongly urges the public to be vigilant when investing with local or foreign investment companies. There are many unscrupulous parties who take advantage of the public’s trust to lure them into seemingly high-return-no-risk investment activities.

The SC reminds investors that “get-rich-quick” opportunities touted by fraudsters often turn out to be “get-poor-quick” schemes.

The public should note that almost all types of investments are regulated by Government agencies such as the SC. The public should check with the SC or the relevant authority on the licensing status of the local or foreign company they are investing through.

Investors can also visit the SC website or the Investor Education website at for details on wise investment.


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