Investment Scam Traps in Malaysia: The Growing Threat of Non-Existent Schemes
•By Neo Capitalist
Artikel ini juga tersedia dalam Bahasa Melayu
Loading...
Opportunity or Trap?
In today's investment world, many Malaysians are looking for ways to multiply their money quickly. Unfortunately, opportunities that seem "too good to be true" are usually traps. Non-existent investment schemes — more commonly known as investment scams — are increasingly rampant, victimising thousands of individuals every year, including young people, retirees and professionals.
What Are Non-Existent Investment Schemes?
Non-existent investment schemes refer to financial fraud that promises lucrative returns but does not actually carry out any investment activity. Your money is not invested — it is merely used to pay earlier victims (if any), similar to a Ponzi scheme.
Common Characteristics of Investment Scams
1. High Returns in a Short Period
Example: "Profit of 15% every week!" or "RM1,000 capital becomes RM10,000 in 3 months."
2. Zero Risk Whatsoever
Supposedly "guaranteed profit" investments, even though no investment is free from risk.
3. No Licence from the Securities Commission (SC)
Operators are not registered with the SC or Bank Negara Malaysia (BNM).
4. Use of Celebrity or Religious Figure Names
To gain trust, they often use the names of influencers, celebrities or ustaz (religious teachers).
5. No Actual Product or Business
Supposedly investing in "forex, digital gold, crypto mining or global stocks", but with no proof of transactions or licences.
6. Pressure to Join Immediately
"Limited offer", "last slot", or "price goes up tomorrow".
Scammers' Modus Operandi
Fake platforms: Using websites and applications that resemble legitimate investment platforms. Fake WhatsApp or Telegram groups: Filled with "fake testimonials" and scam agents. Early "withdrawals" to lure victims: Victims are allowed to withdraw small profits initially, then cannot withdraw at all after adding more capital.
Statistics and Recent Cases
According to the Securities Commission of Malaysia (SC), more than RM300 million in losses have been reported due to non-existent investment schemes in recent years. Notable cases include: Unlicensed "crypto arbitrage" schemes, "AI Trading Bot" investments supposedly guaranteed to profit, and "Digital Gold" schemes that had no actual gold at all.
Who Are the Main Targets?
Those aged between their 20s and 50s, retirees with EPF savings, GLC employees and civil servants, and individuals with limited financial literacy.
How to Avoid Becoming a Victim
1. Check licences on the SC & BNM websites: https://www.sc.com.my and https://www.bnm.gov.my
2. Do not trust online testimonials — they can be fabricated, paid for or generated by AI.
3. Avoid sharing financial information — never reveal your bank account details or OTP.
4. Use common sense — if it sounds too good to be true, it usually is.
Reporting Channels
If you feel you have been scammed or nearly scammed:
Conclusion: Do Not Be the Next Victim
In the digital era, financial knowledge is your best shield. Do not merely chase returns — chase understanding. Before investing, investigate and verify. Share this article with friends and family — the more people who are financially literate, the more people who are safe.
Join a basic stock investment class. With knowledge alone, you can build the primary defence for yourself and your family against falling into the trap of non-existent investment scams. Register using the link below:
The main signs include promises of high returns with no risk, no licence from the Securities Commission of Malaysia (SC), pressure to invest immediately, and fake testimonials designed to convince victims.
You can check through the Securities Commission of Malaysia (SC) or Bank Negara Malaysia (BNM) websites to confirm whether the company is licensed. Also use the Semak Mule portal by PDRM to check suspicious bank accounts.
Immediately contact the CCID Scam Response Centre at 03-2610 1559, file a police report, and contact the Securities Commission at 03-6204 8999. Keep all evidence of communication and transactions for the investigation.
The main factors are a lack of financial education, being influenced by promises of quick returns, financial pressure, and trust in close acquaintances who are also involved without realising it is a scam.
The best step to protect yourself from fake investment schemes is to equip yourself with proper investment knowledge. By understanding how the real stock market works, you can distinguish genuine opportunities from scam traps.
Open your CDS account today through the step-by-step guide here to start investing in the stock market.
Download the free stock basics ebook to learn the fundamentals of stock investment from scratch.