Retirement Dreams Shattered: Don't Do This To Yourself!

Two retired Malaysian men have collectively lost more than RM1.14 million to fraudulent investment schemes promoted on social media platforms. The Penang police have launched an investigation under Section 420 of the Penal Code, which deals with cheating and dishonestly inducing the delivery of property.

The first case involved a 55-year-old retiree from a private company based in Butterworth. In April this year, he came across a Facebook advertisement claiming to offer high returns within a short period. Upon clicking the link, he was connected to a woman claiming to be an investment advisor via a mobile application.

She introduced him to an investment platform and assisted him in setting up an account. Between 19 April and 26 May, the victim made 22 transfers totalling RM827,120 to six different bank accounts. The application displayed alleged investment profits amounting to a staggering RM23.24 million. However, when he attempted to withdraw the funds, the transaction was continuously delayed. Realising he had been defrauded, the man reported the incident to the police.

The second incident occurred in the Seberang Perai Utara district. The victim, a 65-year-old retired factory technician, encountered an investment advertisement on Instagram in December last year. He initiated contact via WhatsApp with a woman who persuaded him to download an application called “DMAX GLOBAL” and invest through it.

On 21 March this year, he made his first transfer of RM20,000. Over the next three months, he made 11 transfers totalling RM321,250. Initially, he received a modest return of RM14,150 from the platform. Encouraged by this, he continued investing. However, when he attempted to withdraw RM280,000 in profits, he was informed that he would need to pay a RM120,000 service fee first.

When he suggested deducting the fee from his investment account, the request was denied under the pretext of “system limitations”. The scammers then escalated pressure, urging him to deposit more funds. Sensing something was wrong, he filed a police report on 12 June.

Authorities are currently working to identify the individuals involved and trace the flow of funds in both cases. Penang Police Chief Datuk Hamzah urged the public to remain vigilant and not to fall for investment advertisements on social media that promise unusually high returns. He stressed the importance of verifying the legitimacy of any investment platform before committing funds, especially when approached through unofficial channels.

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