FPAM Cautions Public Of Clone Financial Planning Firm Scams

Alex Cheong Pui Yin

14th April 2023 - 2 min read

The Financial Planning Association of Malaysia (FPAM) has cautioned members of the public of suspicious investment schemes that are being promoted using the names of legitimate financial planning firms.

In a statement, FPAM explained that these scams – called clone firm scams – will involve scammers adopting the key names of licenced financial planning companies for fake companies, with the aim of deceiving the public. They then pretend to be representatives from these “legitimate” firms.

“They also offer dubious investment schemes that promise high returns and post bogus investor testimonials to show proof of transfer receipts and making profit to gain the confidence of potential victims,” the association shared, adding that potential victims will usually be added to social media chat groups.

FPAM further shared some examples of such scams, involving as many as nine of its members who had their names cloned to promote illegal schemes. “Their actual names are Wealth Vantage Advisory Sdn Bhd, Genexus Advisory Sdn Bhd, Excellentte Consultancy Sdn Bhd, Alpine Advisory Sdn Bhd, UOB Kay Hian Securities (M) Sdn Bhd, CC Advisory Sdn Bhd, Harveston Wealth Management Sdn Bhd, iFast Capital Sdn Bhd, and Kenanga Investors Bhd,” FPAM clarified.

Given the high possibility of confusion that these scammers could cause, FPAM advised the public to always check Securities Commission Malaysia’s (SC) updated list of licenced and registered financial planning organisations for confirmation before making any investments. As an additional step, investors should also look up the contact details of the actual firm itself, and then contact them to verify information.

Those who have fallen victim to these scams, meanwhile, are urged to report their situation to relevant authorities as soon as possible. “Victims of these scams should immediately report to the National Scam Response Centre by calling their hotline, 997, and also file a report with the SC,” said FPAM.

(Source: The Malaysian Reserve)

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Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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