Crypto Scam Advertised on Facebook Costs an E-Hailing Driver RM147,600

A 65-year-old e-hailing driver in Malaysia has become the latest victim of an online investment scam, losing RM147,604 to a fraudulent cryptocurrency stock scheme that was advertised on Facebook.

According to District Police Chief Assistant Commissioner Mohd Sohaimi Ishak, the victim lodged a report on March 8, stating that he had been deceived into investing in a cryptocurrency platform that promised substantial returns. The scam was initiated on October 20 of the previous year when the individual came across an advertisement on Facebook promoting cryptocurrency investments. Tempted by the prospect of quick financial gains, he clicked on the link provided and engaged with the purported investment platform.

Between November 22 and January 6, the victim proceeded to transfer funds on ten occasions, depositing money into eight separate bank accounts. However, when he attempted to withdraw what he believed to be his profits, he was met with demands for additional payments. Upon realising that he had been defrauded, efforts to recover the lost funds proved futile.

An initial investigation by the polices Commercial Crime Investigation Department, using the Semak Mule platform, revealed that seven out of the eight bank accounts involved had already been flagged in 27 previous reports related to investment scams. This finding further solidified the fraudulent nature of the scheme and underscored the extent of illicit financial activities associated with such online platforms.

Authorities have classified the case under Section 420 of the Penal Code for cheating, an offence that carries severe legal consequences, including a prison sentence of up to ten years, whipping, and a fine. Law enforcement agencies continue to warn the public about the risks associated with online investment opportunities, particularly those that guarantee unrealistically high returns.

In light of this incident, Sohaimi has urged individuals to exercise extreme caution when encountering investment proposals on social media or other online platforms. He advised potential investors to verify the legitimacy of any investment scheme with the Securities Commission Malaysia and to utilise the Semak Mule portal to check if bank accounts have been flagged for suspicious activities before proceeding with transactions.

Victims of such scams are encouraged to act swiftly by contacting the National Scam Response Centre (NSRC) via the emergency hotline 997 to mitigate further financial losses.

To further safeguard investors against fraudulent schemes, platforms such as WikiFX provide essential tools and resources for verifying the legitimacy of brokers and financial service providers. With an extensive database covering global brokerage firms, up-to-date regulatory status reports, and user reviews, WikiFX enables investors to make informed decisions before committing their funds. The apps risk assessment features and alerts for unlicensed or questionable entities help users identify potential scams, ensuring greater security for their investments.