An investment scam is a fraudulent scheme that promises high returns with little or no risk. These schemes are designed to deceive individuals into investing their money in non-existent or illegitimate ventures.

Modus operandi
  • Scammers attract victims by offering investment opportunities that promise unusually high returns with little or no risk.
  • Scammers often pose as reputable investment professionals or use fake company profiles to build trust.
  • Scammers may create professional-looking websites, social media pages, and even fake reviews or testimonials.
  • Scammers may reference high-profile investors, known companies, or success stories to give the appearance of legitimacy.
  • Scammers often pressure potential victims to act quickly by claiming the opportunity is time-sensitive or has limited availability.
  • To confuse and convince victims, scammers use complex financial terms and jargon, making it hard for investors to fully understand the investment. This also makes the scam appear more sophisticated and legitimate.
  • Scammers may provide initial small payouts to early investors, making the scheme seem credible and encouraging them to invest more money or recruit others.
  • Some scams, like Ponzi schemes, rely on victims bringing in new investors to keep the scam afloat. The focus shifts from generating legitimate returns to recruiting new participants.
  • Scammers may specifically target vulnerable groups, such as retirees, new investors, or individuals in financial distress, as they are more likely to fall for the promises of quick and easy returns.
What you should do?
  • Only invest with licensed investment professionals.
  • Conduct thorough due diligence on both the investment scheme and the individual offering it.
  • It is essential to purchase only securities products registered with the Securities Commission (SC) and Bank Negara Malaysia (BNM) to ensure you can seek recourse if something goes wrong.
  • Verify the status of investors before making any investments through the SC website (https://www.sc.com.my/investor-alert-list), BNM’s website (https://www.bnm.gov.my/financial-consumer-alert-list) for unauthorised entities/investors, and the "Semak Mule“ (https://semakmule.rmp.gov.my) platform to check bank accounts, company names, or phone numbers that might be linked to scams.
  • If unsure, reach out to SC or BNM for verification. This helps you ensure that the investors you are dealing with are legitimate.

If you have been scammed, please inform us immediately at 1300 88 1900 or +603 2613 1900 (Overseas); or call the National Scam Response Centre (NSRC) at 997 from 8:00 am – 8:00 pm daily; or email customercare@bsn.com.my.