Six arrested in Kakaue investment fraud with RM18 million in losses

KUALA LUMPUR: Police have arrested six local individuals suspected of being involved in the “Kakaue” investment fraud syndicate, which has resulted in losses amounting to RM18 million through several raids in Sarawak, Sabah, Penang, Kedah, Melaka, and Johor.

Bukit Aman Commercial Crime Investigation Department (CCID) director, Datuk Seri Ramli Mohamed Yoosuf, said that during the raids conducted from Oct 7 to 11, four men and two women aged between 19 and 41 were apprehended.

He noted that all suspects acted as owners of shell companies to receive investment funds from victims participating in the scheme.

“Based on investigations, the syndicate advertised investment offers through Facebook, using the name Kakaue, which falsely claimed to operate as a cryptocurrency investment broker.

“Interested victims would be added to a WhatsApp group where details about the investment would be explained. They would then be asked to download the Kakaue investment application and register as members,“ he said at a press conference here yesterday.

He said after registering, victims must contact the customer service centre for instructions on making investment payments to several company accounts.

He explained that victims could see their investments generating profits on the downloaded application, however, when they attempted to withdraw it, the company would provide excuses.

To date, the department has received 50 police reports nationwide, and the case is being investigated under Section 420 of the Penal Code, he added.

Meanwhile, at the same press conference, Ramli announced the department’s success in arresting nine individuals believed to be involved in an online job scam syndicate during an operation at a residential premises in Kuala Lumpur.

During the raid on Oct 9, six men and three local women aged between 17 and 31 were arrested at a condominium suspected of being used as a call centre for the syndicate’s activities, he said.

“Inspections revealed that this syndicate had been operating for about three months and was involved in online job offers targeting victims from the United Kingdom,“ he said.

Five computers, five laptops, 18 mobile phones, one Wi-Fi router, one notebook, and one key with an access card were also seized, he said.

He stated that all members of the syndicate were paid salaries ranging from RM3,000 to RM4,000 per month, were trained in job procedures, and were provided with scripts to memorise.

The case is being investigated under Section 420 of the Penal Code.