This message comes to you from the Consumer and Investor Office (“CIO”) of the Securities Commission Malaysia (“SC”).
Clone Firm Scams involving intermediaries
In May 2023, we included Four (4) clone firm scams on our SC Investor Alert List, as follows:
| No. | Name of Unauthorised Website/Products/ Entities/Individual | Remarks |
| 1. | Potential clone entity – Alta Technologies | Misusing the name and credentials of Alta Sdn Bhd (a registered Equity Crowdfunding company with the SC) to carry out an illegal investment scheme offering high returns e.g return of RM5,000 in 2 days with investment of RM250. |
| 2. | Potential clone entity – VKA Wealth | Misusing the name and credentials of VKA Wealth Planners Sdn. Bhd. (CMSL/A0195/2007) a licensed entity with SC for dealing in securities (dealing in securities restricted to unit trusts), financial planning and dealing in private retirement schemes to carry out an illegal investment scheme offering high returns e.g. return of RM9,000 in 3 hours with investment of RM300.Misrepresentation, misusing SC’s name and logo |
| 3. | Potential clone entity – UNO Advisers (https://chat.whatsapp.com/JDAhqouHxxE9a9mX4ynTwy) | Misusing the name and credentials of Uno Advisers Sdn. Bhd. (eCMSL/A0384/2023) a licensed entity with SC for dealing in securities (dealing in securities restricted to unit trusts) and financial planning to carry out an illegal investment scheme offering high returns e.g. return of RM7,000 with investment of RM300.Misrepresentation, misusing SC’s name and logo |
| 4. | Potential clone entity – FA Advisory 134 (https://chat.whatsapp.com/GlvLL4riRYS47FRp5dglXT) | Misusing the name and credentials of FA Advisory Sdn. Bhd. (CMSL/A0276/2010) a licensed entity with SC for dealing in securities (dealing in securities restricted to unit trusts), financial planning and dealing in private retirement schemes to carry out an illegal investment scheme offering high returns e.g. return of RM14,210 with investment of RM300.Misrepresentation, misusing SC’s name and logo |
These clone firm scams had impersonated some of SC’s licensed entities, including misusing their name and logo and credentials of legitimate entities.
The scams were promoted via social media WhatsApp to lure investors with investment packages guaranteeing high returns.
The following are the key characteristics:-
- Victims are randomly invited/added into a WhatsApp group
- The victims will then be lured to invest in non-existent capital market products with promised high returns
- In order to invest, the scammer will provide a mule bank account details for the investment to be made in cash
- Once the initial “investment” is made, these victims will be notified very soon thereafter that their investment has made a profit which may prompt the victims to make further (and bigger) investment
- However, to withdraw their profits, these victims will be asked to make further payments guised such as Bank Negara charges, income tax charges, administrative fees etc