RM28.72 Lost Every Second

KUALA LUMPUR: The country recorded an average loss ratio of RM2.48 million per day due to investment scam syndicates over the past three years.

In fact, data shows that RM103,383 is lost every hour, RM1,722.45 per minute, and RM28.72 per second due to these scams.

This ratio is based on overall statistics recorded by the Commercial Crime Investigation Department (JSJK) of the Royal Malaysia Police (PDRM) for the period from 2023 to July this year, involving 26,196 cases with losses amounting to RM3.24 billion.

Based on detected tactics, investment scam syndicates not only use artificial intelligence (AI) technology with images of individuals or prominent figures and Islamic elements, but have also been identified as having links with money mule syndicates.

This is evidenced by the record of 14,591 arrests and 6,571 charges carried out by JSJK.

JSJK Bukit Aman Director, Datuk Rusdi Mohd Isa, said syndicates typically promote investment schemes that promise high returns within a short period, with claims of low or no risk.

According to him, syndicates use social media, messaging applications, websites and online investment groups to attract victims.

“The syndicates also display fake testimonials, fabricated profits, and use the identities of influential individuals or legitimate-looking companies to gain victims’ trust.

“Victims are then persuaded to make an initial investment before being asked to make additional payments such as taxes, processing fees or profit activation fees,” he told Sinar Harian at the JSJK office here recently.

He revealed that, based on recorded cases, some victims used their Employees Provident Fund (EPF) savings, borrowed from friends, financial institutions, and even loan sharks.

He said some victims invested for months until they eventually suffered losses of up to RM3 million before realising they had been deceived.

“The modus operandi varies. They use digital platforms on social media by promising high returns, claiming 300 percent profits, Shariah-compliant and fast returns.

“To gain victims’ trust, the victims’ initial investments will first yield profits, before the victims add more investment funds. The syndicates ‘hook’ them first until the victims eventually lose millions of ringgit,” he said.

Rusdi said that even though arrests have been made, JSJK does not rule out the possibility that syndicates will resume operations using different names, companies or platforms to avoid detection.

“Based on suspect arrests, they have also been found to act as money mule account providers.

“We monitor social media 24 hours a day by examining certain indicators before informing the Malaysian Communications and Multimedia Commission (MCMC) for blocking action,” he said.

He added that online crime last year recorded losses of approximately RM2.9 billion, with investment scams contributing RM1.5 billion of that amount.

“These cases are very worrying because some victims invested more than a million ringgit but ended up with only RM300 left in their accounts,” he said.

According to him, syndicates using AI-generated fake videos or images of prominent individuals influence victims to participate in the investments.

“They will say things like ‘don’t be too late’ and so on. But when those fake displays spread quickly, it influences other individuals who see them,” he said.

Many private sector workers ensnared

Rusdi said, in terms of occupation, private sector workers recorded the highest number of victims, totalling 13,241 individuals, representing more than half of the total victims recorded.

“This is followed by retirees, unemployed individuals, civil servants and business owners.

“Additionally, based on statistical analysis by gender, male victims recorded a higher number at 15,021 individuals compared to 11,175 women,” he said.

He explained that the main factors victims fall prey to syndicates are the desire for substantial returns in a short period and trust in promotions that appear convincing.

“The syndicates also exploit the victims’ lack of investment knowledge, economic pressure and use psychological manipulation techniques to influence victims to make hasty decisions,” he said.

He said JSJK will continue to strengthen enforcement actions, intelligence and operations against investment scam syndicates nationwide.

“In addition, strategic cooperation with the Securities Commission Malaysia (SC), Bank Negara Malaysia (BNM), MCMC, financial institutions and other enforcement agencies will continue to be enhanced to curb syndicate activities,” he said.

Sinar Harian