24th July 2025 - 4 min read
Investment scams are on the rise in Malaysia, with authorities reporting a significant increase in cases and financial losses during the first half of this year. According to the Federal police, these fraudulent schemes have become more sophisticated, costing unsuspecting Malaysians hundreds of millions of ringgit.
The Bukit Aman Commercial Crime Investigation Department has revealed a worrying trend in financial fraud. In the first six months of 2025, a total of 4,368 investment scam cases were reported. This represents a 60.8% increase compared to the same period in 2024, where 2,715 cases were recorded.
The financial impact on victims has also more than doubled. Total losses from these scams have exceeded RM750 million this year, a sharp rise from the RM350 million lost during the first half of the previous year.
One of the most common methods used by scammers begins with advertisements on social media platforms. These ads promise attractive investment opportunities. Individuals who show interest are then added to a WhatsApp group. In this group, a person claiming to be an expert trader provides guidance on the stock market.
Victims are then instructed to register on a specific website to begin their investment journey. They transfer their money to mule bank accounts provided by the scammers. The website dashboard will often show impressive but fake earnings. However, when victims attempt to withdraw their supposed profits, they are met with various excuses, and the money is never released.
Another tactic involves scammers who present themselves as foreign exchange brokers. They offer different investment packages that promise exceptionally high and fast profits, sometimes within just a few hours.
To participate, victims are told to pay for the investment capital, brokerage fees, international withdrawal charges, and taxes. Despite making all these payments, the promised profits never materialise, and the victims are left with significant financial losses.
A third, more well-planned ploy is the classic Ponzi scheme, often involving cryptocurrency. To appear legitimate, these syndicates may conduct online briefings, hold face-to-face meetings, and even operate from a physical office.
Once a victim is registered, they are asked to deposit stablecoins, such as USDT (Tether), from their personal digital wallets onto the scammer’s investment platform. The system will display fake profits, encouraging investors to inject more capital. In reality, the money collected from new investors is used to pay returns to existing ones. The scheme inevitably collapses when there are not enough new investors, at which point the syndicate disappears with the funds.
The police urge the public to be extremely cautious of investment schemes that promise guaranteed or unusually high returns. It is crucial to understand the methods these criminal organisations use to deceive people. Before transferring any money, you can verify bank accounts, telephone numbers, and companies under police investigation by visiting the official semak mule portal.
Interestingly, the RinggitPlus Malaysian Financial Literacy Survey (RMFLS) 2024 revealed that collective efforts to fight scams are showing positive results. The survey found that 38% of Malaysians encountered fewer scam attempts compared to the previous year, and 56% believed that national awareness campaigns helped them avoid becoming victims. However, the danger persists, as 86% of respondents still encountered a potential fraud attempt in 2024.
The report also highlighted that the current challenge is a knowledge gap, with up to 32% of people admitting they are unsure what to do or who to contact when faced with a financial scam scenario. This is where arming yourself with knowledge becomes your most critical line of defence. Take the time now to learn the correct procedures for reporting a scam and save the official fraud hotlines for your bank and the National Scam Response Centre (997). Being equipped with this knowledge before an incident occurs is the most important step you can take in protecting your financial life.
Looking for more financial insights? Stay tuned for more findings as RMFLS 2025 is coming soon!
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