Police investigate an average of 15 non-existent investment cases daily

The Royal Malaysia Police, through the Commercial Crime Investigation Department, investigated an average of 15 non-existent investment cases daily from January until October this year.

Bukit Aman Commercial Crime Investigation Department director Ramli Mohamed Yoosuf said they opened 4,435 investigation papers on non-existent investment cases involving losses amounting to RM364,537,421 during that period.

"What is concerning is that the value of losses is equivalent to 20 percent of the total loss value of commercial crime cases, which is RM1,824,715,080 recorded this year (until October),” he told a special media conference in Kuala Lumpur today.

He said that of the 4,435 non-investment cases investigated from January to October, a total of 4,051 cases involved online investment while 384 cases involved face-to-face investment.

Ramli (above) said that among the non-existent investment cases identified were schemes offering profits of up to 51 times within a period of three to six hours after the investments were made.

He said investigations found that the syndicates began operating in October last year through Facebook, WhatsApp, Telegram and TikTok by offering investments in shares, digital currency and grants using the name of the Malaysian Investment Development Authority (Mida) with five packages from as low as RM300 to RM2,000.

"So far, police have received 28 police reports nationwide, with total losses of RM1,242,839.34 related to this scam. The cases are being investigated under Section 420 of the Penal Code,” he said.

Various employment backgrounds

Ramli said Mida had issued a warning on Nov 9 last year about investment fraud using the agency's name on their Facebook page.

In addition, he said police have also traced the investment scheme known as CCF Trade and EXGCOO 2023, with 41 cases being investigated involving losses of RM8.05 million.

"The investment schemes offered are based on the buying and selling of shares in Malaysia, and foreign markets like the United States and Hong Kong, with interested investors told to download applications for them to view their accounts generating profits, but which cannot be withdrawn,” he said.

Ramli said investigations found that the victims involved in these fraud cases are aged between 29 and 79 and come from various employment backgrounds, with a majority of them being retirees and businessmen.

Mule account holders

Meanwhile, police have arrested four men aged between 37 and 63, who acted as company directors and individuals looking for mule account holders on suspicion of being involved in the Yomaex investment fraud syndicate.

"So far, 45 individuals have been detained and 85 investigation papers opened, involving losses amounting to RM55,795,343.48,” he said.

Ramli said they are still trying to trace the existence of love investment scams using almost the same modus operandi as love scams. Although the syndicate does not ask for money directly from its victims, it would ask as a mentor to teach its victims about the investment methods.

"Once they gain the victims’ trust, the syndicate will then ask them for money. So far, we know there are victims involved in love investment scams but there are some who do not want to come forward to lodge reports,” he said.

In addition, Ramli said police have also identified a trend of company registration and opening of bank accounts in the company's name to be used as a mule account to enable financial transactions to be carried out more frequently and involving larger amounts.

"So far, police have traced a total of 86 companies and 70 businesses registered for such purposes and, as a preventive measure, police proposes that procedures and conditions for the registration of companies and business be refined and tightened,” he said.

- Bernama