Majority of investment scams in Malaysia rise linked to social media, say cops

KUALA LUMPUR: This year, the majority of the 4,355 investment scam cases in Malaysia have been linked to schemes advertised on social media sites and chat applications, says Comm Datuk Seri Ramli Mohamed Yoosuf.

The director of the Bukit Aman Commercial Crime Investigation Department (CCID) reported that 82%, or 3,574 cases, began with advertisements on social media and chat applications.

“The top three platforms for investment scams are Telegram with 1,506 cases, Facebook with 1,068 cases, and WhatsApp with 1,000 cases,” he said when contacted on Friday (Aug 18).

In terms of financial losses, WhatsApp led with RM185.2mil, followed by Facebook with RM164.1mil, and Telegram with RM33.8mil, Comm Ramli stated.

He noted that other mediums used for scams included websites, Instagram, Google, phone calls, WeChat, and in-person interactions.

Between January and September, a staggering half a billion ringgit was lost due to these scams.

“Victims suffered losses amounting to RM548.1mil during this period,” he said.

Comm Ramli warned that any offers of Initial Public Offering (IPO) shares via social media involving overseas stock exchanges are likely scams.

“These are just ruses by scammers to lure victims into big investments with promises of huge returns,” he said.

He explained that scammers exploit victims’ greed and advised against believing such schemes.

“An IPO must be registered with the Securities Commission (SC),” he emphasized.

Comm Ramli urged those interested in IPO offerings to verify with the SC before investing.

He expressed disappointment that despite numerous news reports and prevention messages, people still fall victim to investment scams.

“It is even more troubling when individuals question the police advice, claiming their ‘investments’ are legitimate,” he remarked.

“I have consistently stated that all investment offers on social media are scams without exception,” he continued.

He also urged the public not to let greed cloud their judgment.

“Do not believe any investment offers on social media,” he stressed.