RM12 Tax Notice Turns Into RM36,500 Scam, Chinese Student Targeted by Fake PDRM App

The student’s bank alerted her to the scam attempt, revealing a fraudulent transaction of RM36,540, far exceeding the initial RM12.61 tax claim.

Subscribe to our FREE Newsletter, or Telegram and WhatsApp channels for the latest stories and updates.

A Chinese international student narrowly avoided losing RM36,500 in a sophisticated tax scam that impersonated local authorities, raising concerns about the vulnerability of foreign students to such fraudulent schemes.

Initially shared on the Chinese social media platform Xiaohongshu, the incident involved a text message claiming that the student had unpaid taxes and faced legal consequences.

The student received a text message stating she had violated Malaysian law by failing to pay taxes.

The message threatened six months’ imprisonment if payment wasn’t made within 24 hours.

Jailhouse Shock: The Six-Month Threat That Sparked Panic

“When I saw the mention of six months imprisonment, I was instantly frightened,” the student recounted.

Panicked, she clicked on a provided link, which appeared to request only RM12 in payment.

The page was designed to look credible, further convincing the student of its authenticity.

The scam was only uncovered when the student’s bank flagged an attempted transaction of 60,000 yuan (about RM36,540) – far exceeding the displayed RM12 fee.

“I was puzzled. I only paid RM12; my bank card limit is over 30,000 yuan (about RM18,270). How could it be over the limit?” the student said.

The Bank Call: Unmasking a Digital Heist in Progress

A subsequent call from her bank revealed the true nature of the attempted transaction, shocking the student.

“Fortunately, my credit card had a limit, so this fraudulent transaction didn’t go through. However, this means my credit card is now ruined,” she added.

The student shared screenshots showing that the scammers had impersonated the Royal Malaysian Police’s mobile app, “MyBayarPDRM.”

They claimed she owed RM12.61 in taxes for 2023, violating Malaysian criminal law.

The student admitted that while she would have been more sceptical of such a scam in China, the threat of legal consequences in a foreign country caused her to panic and act irrationally.

A Chorus of Victims: The Social Media Ripple Effect of a Digital Con

Social media responses to the student’s post indicated that the scam was widespread.

Many reported similar fraudulent messages, highlighting the scam’s reach.

While bank security measures successfully protected numerous potential victims, several individuals reported compromised credit cards, highlighting the scam’s potential for financial damage.

Some noted the psychological tactics employed by the scammers.

“The small amount, equivalent to a bowl of noodles, lulls people into a false sense of security,” one user observed.

“It seems insignificant enough that people enter their card details without much thought.”

Protecting Consumers from Scams

Starting May last year, the Malaysian Communications and Multimedia Commission (MCMC) has instructed all telecommunications providers to block SMS messages that include URL links, personal information, or phone numbers.

This measure by the MCMC aims to protect consumers from potential scams and phishing attempts that may occur through malicious links, addressing a long-standing problem.

Jangan panik sekiranya anda menerima panggilan telefon, SMS, emel dan dokumen meragukan yang mengatakan anda mempunyai tunggakan cukai#KPDNHEP #Scam #TakNakScam pic.twitter.com/7kn5cCxurH
— KPDN (@KPDN_HQ) November 24, 2022

All telecommunication companies (telcos) in Malaysia are required to comply with this directive regarding the blocking of URL links in person-to-person SMS.

If individuals continue to receive these messages, they can submit a complaint to MCMC by providing details such as the phone number and a screenshot of the SMS.