SC recorded 3,380 complaints of fraud, unlicensed activities as of the third quarter of 2024
KUALA LUMPUR: The Securities Commission of Malaysia (SC) has received 3,380 complaints and inquiries about fraud and unlicensed activities as of the third quarter of 2024, a jump of 28 percent compared to last year.
Executive Director and Chief Counsel, Yew Yee Tee, said in a statement that today’s cases have become more sophisticated and they also involve the use of “deepfake” technology as well as a growing modus operandi.
“The positive side is that we also see a higher level of awareness and skepticism among the public, whereby the majority of complainants and inquiries that come to the SC are not victims of this fraud (compared to previous years),” he said during the launch of InvestSmart Fest 2024 in Mid Valley Exhibition Center, Kuala Lumpur.
However, he said fraud and unlicensed activities continue to be a growing concern.
“In 2023, the SC received 3,262 complaints and public inquiries about various frauds and unlicensed activities, an increase of 321 percent from 2019,” he said.
On the growing influence of finance on social media, Yew said the SC had updated its guidance note on investment advice.
He said many have turned to social media and other digital platforms for information, including advice but these financial influencers are not equipped with investment knowledge, which, in some cases, may require a license from the SC but they are not actually licensed.
He also highlighted several cases in the United States (US) when regulators took action against famous personalities who became influencers promoting crypto assets.
Yew also warned against renting out bank accounts to fraudsters to receive and transfer illegally obtained funds.
“Most frauds share the same element, which is the use of donkey bank accounts. Donkeys can now be fined RM10,000 and jailed for at least a year if found guilty,” said Yew.
They will not be allowed to maintain or open a bank account; this will make it difficult for them to get a job or run a business, he said.
InvestSmart 2024 is held in collaboration with Bursa Malaysia and is expected to attract over 11,000 visitors.
— BERNAMA