RM 2.1 Million Lost: How a Company Director Fell for a Crypto Scam

A 77-year-old company director lost RM2.1 million after becoming a victim of a fraudulent investment scheme on cryptocurrency exchange platform. The incident occurred after he came across an advertisement on Facebook promoting a cryptocurrency investment opportunity in August.

Selangor police chief Datuk Hussein Omar Khan reported that the victim initiated contact with the scammer through WhatsApp. He was instructed to register via a provided link to participate in the scheme. Believing in the promise of high returns, he proceeded to transfer RM2,118,810 across 26 transactions to 11 different bank accounts.

Despite completing the transactions, the expected profits never materialised. Instead, the fraudster demanded an additional RM1.2 million in taxes before the victim could withdraw his supposed earnings from the platform. Realising he had been deceived, the director filed a police report in Kajang. Authorities have classified the case under Section 420 of the Penal Code, which deals with fraud.

Datuk Hussein urged the public to exercise caution when encountering investment offers on social media. He highlighted the dangers of schemes that guarantee unrealistic returns and warned against using mobile applications that are not approved by Bank Negara Malaysia or the Securities Commission Malaysia.

Under no circumstances should you engage with an investment scheme advertised on social media that promises high returns or sounds too good to be true without exercising caution. If in doubt, download the free WikiFX mobile application from Google Play or the App Store.

This global broker regulatory query platform, at your fingertips, provides detailed information about brokers, including their regulatory status, customer reviews, and safety ratings. It allows users to verify the legitimacy of investment platforms before committing their money. With access to in-depth insights and risk alerts, WikiFX equips potential investors with the tools to make informed decisions and steer clear of unauthorised or unlicensed entities. By using WikiFX, users can safeguard their savings and avoid the costly traps of fraudulent investment syndicates.