SC warns of increasing investment scams through messaging apps

SHAH ALAM - The Securities Commission (SC) Malaysia said investors should always exercise caution when investing given the rise of investment scams currently circulated on the messaging app, Telegram.

In a statement today, SC said investors should not deposit money into someone’s personal bank account.

From January to now, it has received a total of 47 complaints and enquiries on illegal investment schemes.

These schemes offer non-existent investment opportunities, promising attractive and risk-free returns within a short span of time, it said.

"They commonly offer unrealistic returns of as high as 1,000 percent within the timeframe of 24 hours," it said.

The perpetrators will use various names to carry out these investment scams, and may also impersonate or clone licensed capital market intermediaries by using the names, logos, credentials, websites and other details of the legitimate entities, it added.

The modus operandi is to create a public group in Telegram to promote these packages, accompanied by fake testimonies and sometimes advertised as being Shariah-compliant.

Interested investors will be asked to directly message the representatives to begin investing and are often instructed to deposit monies into personal bank accounts of individuals who claim to represent a legitimate entity, or even into an unrelated corporate account.

In an effort to lure unsuspecting victims, perpetrators usually claim that their entity and investment schemes are approved by financial authorities.

SC urged the public to refer to its Investor Alert List before investing, as it contains details of unauthorised websites, investment products, companies and individuals.

The public could call or lodge a report with the SC’s Consumers and Investors Department at 03-6204 8999 or email: [email protected].