Over RM800,000 investment scam losses reported to Securities Commission Malaysia

KUCHING (July 4): The Securities Commission Malaysia (SC) has received various complaints from investors who have fallen prey to investment scams with reported losses exceeding RM800,000.

SC cautioned the public on investment scams enticing investors with pre-Initial Public Offering (IPO) shares of companies seeking listing on Bursa Malaysia.

“These scams, mostly involving private placement offerings, are usually timed with upcoming IPO listings published on Bursa Malaysia’s website,” SC said in a statement today.

The commission said perpetrators of these scams, posing as ‘agents’, usually create a public group on WhatsApp to promote these pre-IPO investments.

Following this, potential victims will be added into the group unsolicited, said SC, adding that these schemes may be accompanied by fake testimonials from other investors to appear credible.

SC said payments for the ‘subscription’ will be required to be made to bank accounts of entities not related to the IPO and suspected of being mule bank accounts.

“On the IPO listing day, these ‘agents’ will proclaim that the IPO shares have been listed and had made profits, and that additional payments are needed for their shares to be allotted.

“This of course is fraudulent, so as to convince the victims to give more money,” SC pointed out.

The commission said it takes this matter seriously and will continue to monitor and take appropriate action against such investment scam activities.

In addition, members of the public are advised to be vigilant in evaluating investment offers including ensuring they do not transfer or deposit money into suspicious accounts.

To verify investment offers, go to the SC Investment Checker at www.sc.com.my/investment-checker.