SC receives over 2,000 queries, complaints on scams until Sept
Published on: Saturday, October 09, 2021
By: Bernama
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Kuala Lumpur: The Securities Commission Malaysia (SC) has received over 2,000 queries and complaints on illegal investment schemes or scams as of Sept 30 this year. 

Executive chairman Datuk Syed Zaid Albar said the queries and complaints have more than doubled the total number reported in 2020, adding that the SC has taken swift actions to combat the scams. 

“As of Sept 30, 2021, 202 new entries has been made in the SC’s Investor Alert compared to 134 entries for the entire year of 2020.

“This year alone, with the help of Malaysian Communications and Multimedia Commission and Facebook Malaysia, we have managed to block 97 websites, and seven Facebook accounts,” he said in his welcoming remarks at the virtual InvestSmart Fest 2021 (ISF 2021) Friday. 

Syed Zaid said the scams typically promise high returns within a short period, with little or no risk, and are frequently promoted through the social media channels with payments to the mule bank accounts, operated by scammers.

Aside from investment scams, the number of activities carried out without any licence or registration has also increased, he said, adding that this year, the SC has taken enforcement actions against two foreign digital asset exchanges, reprimanding and blocking their websites for operating illegally in Malaysia.

Additionally, as of Sept 30, 2021, the SC has included 38 operators on its Investor Alert List, comprising entities and related individuals for carrying on the business of investment advice without a licence.

“We have also directed 29 of these operators to cease and desist from providing unlicensed investment advice.

“These activities were typically carried out by self-proclaimed ‘investment gurus’ who offer their services through subscription-based private chat groups on Telegram, WhatsApp and Facebook.

“Do not engage with them as they may be receiving advice from unqualified persons or are being used as part of a market manipulation scheme,” he said.

Syed Zaid advised Malaysians to be more cautious when investing and to never deposit money into someone’s personal bank account.

He also emphasised the importance of equipping oneself with the right knowledge and investment information.

To this end, the ISF 2021 features talks by licensed investment advisers to help Malaysians become acquainted with the nature and quality of advice that could be expected from qualified and licensed advisers.

Themed ‘#JagaDiri #JagaPelaburan’, the online event aims to promote investor empowerment and confidence to enable informed investment decision-making and avoid becoming victims to scams.

The three-day virtual event would also showcase products and services offered by capital market intermediaries, including stocks, bonds, unit trusts, private retirement schemes, exchange-traded funds, equity crowdfunding, peer-to-peer financing, digital investment management and digital asset exchanges. 


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