Kuching Retiree Loses RM9 Million in Alleged Fake IPO Investment Scam, Receives Only RM1,000 Return
KUALA LUMPUR: A 79-year-old retiree from Kuching has lost more than RM9 million after allegedly falling victim to an online investment scam involving fake share investments and non-existent initial public offerings (IPOs), in what police describe as one of the largest scam losses reported in the district this year.
The victim, who was lured by promises of extraordinary returns within a short period, eventually realised he had been deceived after repeated attempts to withdraw both his investment capital and the profits supposedly reflected in the investment platform failed.
Kuching police chief Assistant Commissioner Alexson Naga Chabu said the district police headquarters’ Commercial Crime Investigation Division recently received a report from the victim regarding losses amounting to RM9.082 million.
Preliminary investigations revealed that the retiree first became acquainted with the suspect around January this year before being introduced to an investment scheme that allegedly involved purchasing shares and participating in lucrative IPO opportunities.
According to Alexson, the suspect convinced the victim that the investment was legitimate and capable of generating substantial profits within a short period.
Believing the promises made, the elderly man began transferring money in stages over several months.
“The victim was persuaded to participate in what was presented as a share investment and IPO scheme.
“Convinced by the offer, he transferred money in stages through 27 separate transactions into nine different bank accounts provided by the suspect,” Alexson said in a statement today.
He said the total amount transferred by the victim reached RM9,082,000.
However, despite investing millions of ringgit, the victim only received RM1,000 as returns from the supposed investment.
The victim continued to believe the scheme was genuine as the application used by the syndicate displayed profits and increasing investment values.
It was only after several unsuccessful attempts to withdraw both his capital and the promised earnings that he realised something was wrong.
“After repeatedly failing to withdraw the funds and becoming suspicious, the victim lodged a police report for further action,” Alexson said.
Police are currently investigating the case under Section 420 of the Penal Code for cheating and dishonestly inducing the delivery of property.
Alexson warned that online investment scams have become increasingly sophisticated and are targeting people from all walks of life, particularly senior citizens who may have substantial savings.
According to him, syndicates frequently use social media platforms, messaging applications and professionally designed websites or mobile apps to portray themselves as legitimate investment companies.
Some scammers even display fake profit statements and fabricated testimonials from supposed investors to gain the trust of victims.
“These criminals are becoming more creative in their methods.
“They exploit people’s desire to grow their savings quickly by offering unrealistically high returns with little or no risk,” he said.
Alexson urged members of the public to be cautious whenever approached with investment opportunities, especially those promising guaranteed profits within a short timeframe.
“If an investment sounds too good to be true, it probably is.
“Always verify the legitimacy of the company or investment platform before transferring any money,” he said.
He advised the public to check with relevant authorities such as Bank Negara Malaysia and the Securities Commission Malaysia to ensure any investment scheme is properly registered and authorised.
The police chief also encouraged victims of financial scams to act immediately by contacting the National Scam Response Centre (NSRC) through its 997 hotline.
He said swift action is crucial as it improves the chances of tracing fund transfers and freezing bank accounts linked to scammers.
“Do not delay seeking help.
“The earlier a report is made, the better the chances of minimising losses and assisting authorities in taking action against the syndicate,” he said.
The case serves as yet another reminder of the growing threat posed by online investment scams, which continue to cause devastating financial losses to Malaysians despite repeated warnings from authorities.
