Promises of Quick Riches Turned Nightmare: RM431,000 Lost in a Fake Scheme

A 67-year-old retiree from the private sector lost RM431,000 after falling victim to a fake investment scheme run by a fraud syndicate that promised quick and high profits.

Kulai police assistant chief Tan Seng Lee explained that the victim was attracted by an offer of 20% to 30% returns within just three days. The scammers assured him that these profits would appear directly in his Demax Global account app, which made the scheme seem genuine.

Between 17 March and 15 May this year, the man transferred a total of RM431,000 across 32 transactions into three local bank accounts. After making the payments, he checked the Demax Global app and saw a profit of RM3 million displayed on his screen, which seemed to confirm the offers promises.

However, when he tried to withdraw the money, he was told he needed to pay an extra RM30,000 before he could access his profits.

This demand raised suspicions, and the victim soon realised he had been tricked. He reported the fraud to the police on 20 May.

The police have launched an investigation under Section 420 of the Penal Code, which deals with cheating and fraud.

ACP Tan warned the public to be careful with financial transactions, especially when dealing with unknown people or companies. He urged people to be cautious of investment schemes that promise very high returns in a short time, as they are often scams.

To help the public avoid such traps, the police suggested checking resources like Semak Mule and contacting the CCID Scam Response Centre at 03-26101559 or 03-26101599. Updates and advice are also available on the polices Facebook pages @jsjkpdrm and @cybercrimealertrmp. Victims of scams can also report incidents by calling the National Scam Response Centre at 997.

Financial experts also recommend using tools like the WikiFX mobile app, available on Google Play and the App Store. This app provides information about brokers, including their licensing status, customer reviews, and safety ratings. It helps investors check if an investment platform is trustworthy before putting their money in.