This message comes to you from the Consumer and Investor Office (“CIO”) of the Securities Commission Malaysia (“SC”).
A. Clone Firm Scams involving intermediaries
From January – February 2024, we have included two (2) clone firm scams on our SC Investor Alert List, as follows:
| No. | Name of Unauthorised Website/Products/ Entities/Individual | Remarks |
| 1. | Potential clone entity – I Investment 254 (https://chat.whatsapp.com/E6mT8UPSdvkB4uxbopBm3p) | Misusing the name and credentials of iFast Capital Sdn. Bhd. (a licensed entity with SC for Dealing in Securities, Fund Management, Dealing in Private Retirement Scheme, Investment Advice and Financial Planning) to carry out an illegal investment scheme offering high returns e.g. return of RM8,999 in 3 hours with investment of RM300 |
| 2. | Potential clone entity – IFAST Capital (https://www.facebook.com/100068364910812) | Misusing the name and credentials of iFast Capital Sdn. Bhd. (a licensed entity with SC for Dealing in Securities, Fund Management, Dealing in Private Retirement Scheme, Investment Advice and Financial Planning) to carry out an illegal investment scheme offering high returns e.g. return of RM14,892 in 3-4 hours with investment of RM300 |
These clone firm scams had impersonated iFast Capital Sdn Bhd, including misusing their name and logo and credentials. The scams were promoted via social media channels such as Facebook and WhatsApp to lure investors with investment packages guaranteeing high returns.
B. Observation of new Modus Operandi (MO):-
We continue to see emerging modus operandi on scams and ensures timely intervention is taken. In this regard the following new trends were observed.
Example of investment scam disguised as job opportunities
The perpetrator will generally scout for victims through social messaging platforms namely WhatsApp and Telegram. The victim will be paid a token to perform simple tasks such as writing reviews and ‘liking’ social media pages. Having garnered the victim’s trust, the perpetrator will convince the victim to invest in a non- existent cryptocurrency or share scheme that promises high returns. Monies will be requested to be transferred into a mule bank account, which eventually will be dissipated.
Example of Investment Scam through Dating Apps
The perpetrator will normally befriend the victim through social media or dating sites. After luring the victim into a romantic relationship, the perpetrator will convince the victim to invest in a non-existent cryptocurrency or share scheme with guaranteed high returns. The victim will be asked to deposit the monies into a mule bank account. Eventually, the victim will realise that the relationship is a sham and monies investment have been misappropriated.
C. Investor Education
SC has many exciting Investor Education initiatives planned for 2024, both online and on the ground.
Investment Checker
We recently launched the SC’s Investment Checker – link: https://www.sc.com.my/investment-checker .
This online portal allows you to verify if an individual or entity is authorised by the SC to offer, promote, or sell any capital market products and services in Malaysia.