Johor Contractor Falls Victim To RM688K Investment Scam Promising 410% Returns

E: The victim transferred a total of RM688,000 to three different bank accounts in 17 separate transactions.

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A contractor lost more than RM600,000 in an online investment scam that promised a 410% return over five investment stages in three months.

The 50-year-old victim from Johor Bahru was initially enticed by a Facebook advertisement on 26 July.

Seri Alam district police chief, Superintendent Mohd Sohaimi Ishak, said the scammers lured him into a WhatsApp group where they taught him ‘investment skills’ through videos.

The fraudsters claimed he could earn between 50% to 150% at each stage.

Scammers’ Tactics: Fake Guarantees and Mobile Apps

To appear legitimate, the scammers sent the victim a “guarantee letter” and asked him to download a mobile app called “ATS-P”.

Between 31 July and 8 September, the victim made 17 transfers totalling RM688,000 to three different bank accounts.

In August, the victim reportedly received RM64,000 as an initial return.

However, in early September, when he tried to withdraw more funds, he was told to increase his investment first.

Account Frozen: Scammers Block Access After Refusal to Invest More

When the victim refused to invest more, his account was frozen, and he couldn’t log into the app.

The victim’s suspicions were finally aroused when he attempted to contact the purported investment company for verification.

To his shock, he was informed that the company had never been involved in any such investment plan.

Police have launched an investigation under Section 420 of the Penal Code, which deals with cheating and dishonestly inducing delivery of property.

Money Mules: Authorities Probe Potential Accomplices

Police are also investigating the possibility of ‘money mule’ accounts being used in this scam.

The holders will face legal consequences if the authorities uncover any such accounts.

At the same time, the public is reminded to be cautious of unsolicited investment opportunities, especially those promoted on social media platforms.

According to recent reports, Malaysia has experienced a significant increase in scam cases, with 73% of survey respondents reporting that they have been victims of some form of scam or fraud.