Malaysian Financial Markets Witness Alarming Surge in Scams: A RM2 Billion Loss in 2023

Overview

Financial scams in Malaysia reached an all-time high in 2023, causing significant financial losses, with the Securities Commission Malaysia (SC) reporting over 2,873 cases in Q3 alone. In response, stricter enforcement measures have been taken to combat investment fraud.

concerning Numbers

• Over RM29.2 million was reported lost in February 2023.
• Approximately RM100 million was stolen from 330 victims during a two-week span in March 2023.

Digital Era: New Types of Scams

The digital era has paved the way for innovative yet deceitful schemes, with social media platforms becoming breeding grounds for investing scams.

Manifestations of Scams

• Fake profiles and groups
• Deceptive offers
• Glittering invitations
• Exclusive business ventures or investment opportunities

Notable Scandals: Geneva Gold Futures and Cash Trust

Geneva Gold Futures Scandal

• Total losses: RM5.5 billion

Cash Trust Scandal

• Total losses: RM1 billion

Self-Protection: Essential Steps to Avoiding Financial Scams

1. Stay informed
2. Verify legitimacy
3. Secure online transactions
4. Keep personal information private
5. Consult experts
6. Skepticism
7. Report suspicious activities

Combatting Scams

Education

• Stay informed about scams and tactics

Technology

• Secure online transactions
• Block fraudulent websites and social media accounts

Legislation

• Enforcement measures

International Cooperation

To address the pervasiveness of scams:

1. Education
2. Technology
3. Legislation
4. International cooperation

Associate Professor Dr Chong Wei Ying Marketing Lecturer, Taylor’s Business School, Faculty of Business and Law, Taylor’s University

(The views expressed in this article are those of the author(s) and do not reflect the official policy or position of BERNAMA)