Thousands of Malaysians Duped in RM20 Million Gold Investment Scam

Businessman Rifqi Abu Bakar initially believed he had discovered a lucrative opportunity with a scheme promising returns of 14% to 21% per month. Unfortunately, it proved to be a fraudulent venture. Although Rifqi managed to withdraw a few thousand ringgit, he ultimately lost RM32,000 to a syndicate that allegedly swindled thousands, accumulating an estimated RM20 million.

The syndicate funnelled money through a bank account registered to a suspected drug addict. They ensnared thousands into a fictitious gold investment scheme promoted via a crowdfunding and welfare smartphone app.

The scheme, named Mudah Trading, attracted investors with the allure of high returns. However, the scammers vanished last month, barely a year after launching the business, leaving investors stranded. Victims included retirees, businessmen, teachers, students, and even police personnel. Investments ranged from as low as RM100, but many were persuaded to increase their stakes to over RM100,000. Unlike typical scams that use multiple accounts for receiving payments, this syndicate consolidated all deposits into a single bank account.

Rifqi fell for the scam because the app operator was popular and known for charitable activities. He had clicked on a pop-up advertisement on the app and was directed to a WhatsApp group where he received investment information. He started with small investments in October last year, gradually increasing the amount after receiving the promised returns. However, last month, investors found themselves unable to withdraw their money. By the time he realized the app operators were uninvolved in the scheme, it was too late. Rifqi estimated that the syndicate had taken at least RM20 million.

Rifqi checked with the Companies Commission of Malaysia and discovered that OID Solution was registered as a sole proprietorship under a 34-year-old man last March. He filed a police report two weeks ago.

Police revealed the bank account was registered to a man with a history of drug abuse and related offences.

Khairul, a 33-year-old technician from Sepang, borrowed RM30,000 from a bank to start a business and alleviate his mother's financial burden. His elderly mother ran a food stall and worked tirelessly. He hoped the investment would provide extra funds to start a fish farming business and improve their family income.

Initially, high dividends were paid out, but last month, everything stopped, and those behind the scheme disappeared. The scammers blocked their numbers and became unreachable. Khairul did not expect to recover his money, but he wanted to see the perpetrators punished.

Federal Commercial Crime Investigation Department director Comm Datuk Seri Ramli Mohamed Yoosuf urged scam victims to report to the police. He assured that investigations would be conducted to identify those responsible. Despite continuous efforts to educate the public, some still fell victim to these scams. Authorities advised the public to avoid any investment scheme that is not regulated by the relevant authorities.