Kuching businessman loses nearly RM100,000 to e-commerce scam

KUCHING (Jan 26): A businessman in his mid-30s lost nearly RM100,000 in 10 days, on Jan 9-19, to an e-commerce scam, said Sarawak United Peoples’ Party (SUPP) Public Complaint Bureau chief Milton Foo.

Speaking at a news conference here today, Foo said the victim did not realise it was a scam until his e-wallet account was suspended and he had to pay US$5,000 to activate the account.

“The victim came across an advertisement on Facebook on Jan 9. He clicked on the link, which took him to an e-commerce platform that supposedly enables users to run an online store.

“According to him, he was prompted for personal details, including his bank account. He said the e-commerce platform trades in US dollars and that he must place some capital for the purchase of products in order to trade.

“He injected approximately US$22,000, or RM99,854.40 in total, between Jan 9 and Jan 19, just for the purchase of goods. He was told that the earnings would be credited to his e-wallet account,” he said at the SUPP headquarters here.

Foo said the victim did not think twice about pumping in more money into the online business because the latter had received US$150 in his account on Jan 11.

“On Jan 13, the victim’s online store received five orders, which earned him US$88 worth of incentive. In total, he received US$238. Things looked normal with the e-commerce platform so the victim did not suspect it as a scam at all,” he explained.

Just as the victim thought that he was well on his way to making more money, he discovered that his account was suspended.

The victim was informed by the e-commerce platform operator that his account was suspended due to a client’s complaint.

“The victim said he could view his account balance of US$2,742 but could not withdraw the money. He thus contacted the e-commerce platform operator, and that was when he was told to pay US$5,000 to activate his account.

“Upon disclosing to the operator his limited money, the victim was instructed to borrow from the operator. At that point, he realised that everything was a scam,” Foo said.

The SUPP leader said the victim lodged a police report on Jan 20 and contacted him via Facebook.

“While he does not hold out hope of getting his money back, he still wants to share his story in order to prevent others from falling prey to such a scam.

“He lost about RM100,000 in 10 days. I have told him to request MCMC to look into the website. These scammers are getting creative, and they even created WhatsApp group chats where members of their own people share success stories of how much money they made.

“Everyone should be mindful of online scams, especially fake links that are available on social media accounts including Facebook and Instagram,” he added.

Meanwhile, Foo said another victim contacted him recently regarding free services offered by some legal groups online, claiming to recover the money lost to scammers.

Foo, who is a lawyer by profession, reminded everyone that no legal firm can guarantee that money lost to scams is recovered for any individual.

“If you have been scammed and later come across a person or group online promising to help you in getting your money back, do not fall for it,” he cautioned.