US$2m ‘scratch and win’ scam busted in Penang, 29 arrested

George Town, Penang — Forty-nine individuals, comprising 19 Chinese nationals and 10 Cambodians, have been arrested by Penang police in raids targeting an international 'scratch and win' scam syndicate, according to a statement from state police chief Datuk Dennis Lim Kwang Keng. The operation, conducted by the Penang Commercial Crime Investigation Department, occurred on September 22 at three bungalows in Barat Daya, serving as call centres.

Police claim the syndicate had been operating for approximately two to three months and was renting the properties for RM10,000 per month. The suspects were allegedly luring victims from China and Cambodia via Facebook Live and LINE applications with promises of up to US$2 million in prizes. Victims were directed to pay processing fees, taxes and insurance using QR codes, but were never given the promised rewards.

Police seized over 200 mobile phones, 17 laptops, two desktop computers, six modem sets, customer records, 'Scratch and Win' cards, suspected fake documents and studio equipment. All 29 suspects are currently being held until October 13, and the investigation is being conducted under Sections 420, 120B of the Penal Code, and Sections 6(1) and 15(1)(c) of the Immigration Act.