Beware of scams promising high returns, SC advises public

The Securities Commission says a number of licensed entities in the capital market had lodged reports on the ‘cloning of their corporate identities’.

PETALING JAYA: The Securities Commission (SC) has warned the public against investing in fraudulent companies that promise high returns.

It said there had been an increase in “clone firm” scams, where the fraudsters use names, logos, credentials, websites and other details of a legitimate capital market intermediary to promote bogus investment schemes on social media.

“The scams also promise extraordinarily high returns with little risk.

“Victims are often instructed to deposit money into personal bank accounts of individuals who claim to represent a legitimate licensed entity or a corporate account,” SC said in a statement.

The commission also said that a number of licensed entities in the capital market had lodged reports on the cloning of their corporate identities by unknown persons or organisations.

“SC will take action against those who engage in securities fraud, hold themselves out as a capital market intermediary or carry out any regulated activities without a valid licence or registration under the Capital Markets and Services Act,” it said, warning that those found breaching the law are liable to a10-year jail sentence.

The SC advised members of the public who wanted to invest in any funds to verify the status of the company or individual at their website.

Recently, tycoon Vincent Tan lodged reports with the police and the Malaysian Communications and Multimedia Commission (MCMC) over an online scam that has been using his name and image.

He denied his involvement in the scam that purportedly turns anyone into a millionaire within three to four months. - FMT