When High Returns Go Wrong: How a Finance Manager Lost RM364,000

A finance manager in Malaysia lost more than RM364,000 after falling victim to an online investment scam that promised quick and high returns.

The 54-year-old woman lodged a police report at the Seri Alam police headquarters after realising she had been scammed. According to Seri Alam police chief, Assistant Commissioner Mohd Sohaimi Ishak, the incident began in late December when the victim came across a Facebook advertisement promoting stock investments with high profits.

Attracted by the offer, she clicked on a link provided in the post and was introduced to what appeared to be a profitable investment opportunity. Between 17 February and 22 March, she transferred a total of RM364,274 in 12 separate transactions to three different bank accounts.

After the transfers, the syndicate asked her to deposit additional funds in order to withdraw her investment profits. When she was unable to recover any of the money, she realised it was a scam.

Preliminary checks by the Commercial Crime Investigation Department (CCID) through its ‘Semak Mule’ portal revealed that two of the bank accounts had been previously linked to investment fraud. Police found that three earlier reports had already been filed against those accounts.

The case is now being investigated under Section 420 of the Penal Code for fraud. This section covers offences related to cheating and dishonestly inducing the delivery of property, which carries serious legal consequences.

Authorities are warning the public to be cautious when approached with investment offers that promise high returns in a short period. They urge individuals to verify the legitimacy of such offers before making any payments.

Mohd Sohaimi advised the public to avoid making financial decisions based on advertisements found on social media without proper verification. He also encouraged people to use tools like the CCID‘s ’Semak Mule portal to check bank accounts and identities linked to suspected fraud.

He added that suspicious job or investment offers should be reported to the police or financial authorities immediately to prevent further losses.

With online financial fraud on the rise, education, awareness, and verification remain the most effective defenses against falling victim to scams. This is where WikiFX comes into play. As a free yet powerful mobile application, WikiFX provides detailed information on brokers, including regulatory status, customer reviews, and safety ratings, allowing users to verify the legitimacy of any investment platform before committing their money. With access to in-depth insights and risk alerts, WikiFX equips potential investors with the resources to make informed decisions and avoid unauthorized or unlicensed entities. By checking with WikiFX, users can confidently protect their savings and avoid the costly traps set by unscrupulous investment syndicates.