RM2.48m lost daily to investment fraud syndicates since 2023

According to the Royal Malaysian Police (PDRM), the country has been losing an estimated RM2.48 million per day to investment fraud syndicates since 2023. The losses, based on statistics recorded by the Commercial Crime Investigation Department (JSJK) of the PDRM, have amounted to RM3.24 billion. These syndicates are employing various tactics, including using artificial intelligence technology, Islamic elements, and networks with account fraud syndicates.

JSJK Director, Datuk Rusdi Mohd Isa, revealed that syndicates typically promote investment schemes promising high returns in a short period with low or no risk. They use social media, messaging applications, websites, and online investment groups to attract victims. The syndicates display fake testimonials, fake profits, and use the identities of influential individuals or companies to appear legitimate.

Victims are often lured into making an initial investment, followed by additional payments such as taxes, processing fees, or profit activation.

The modus operandi varies, with syndicates using social media and digital platforms to state high profits, promising 300% profits, being syariah-compliant, and being fast. They "fish" for victims, providing initial profits before the victim adds more money. Despite arrests, JSJK warns that syndicates may operate under different names, companies, or platforms to avoid detection. The arrests have also identified the syndicates as providers of mule accounts.

Online crimes last year recorded losses of approximately RM2.9 billion, with non-existent investments contributing to a loss of RM1.5 billion. The case is particularly concerning as some victims withdrew capital of up to RM1 million but ended up with only RM300 in their accounts. Private sector workers, retirees, unemployed individuals, civil servants, and businessmen have been the most affected, with male victims outnumbering female victims.