PETALING JAYA: Employees Provident Fund (EPF) contributors are reminded to think about their retirement savings and avoid getting into unnecessary legal trouble by colluding with scammers to withdraw their money earlier.
EPF deputy CEO (operations) Datuk Mohd Naim Daruwish (pic) said a special mechanism has been put in place to detect those who tried to withdraw their savings earlier than they are supposed to.
“We urge members not to get involved with the syndicates as we have our ways to detect it,” he said.
The Star broke the news on its front page on Monday that scammers are using social media to lure EPF members into withdrawing savings earlier than they are eligible to.
The syndicate targeted contributors who were desperate for quick cash, and in return asked for 30% to 60% in commission from the withdrawn amount.
It even blatantly used the EPF logo on its social media account in its bid to dupe the public.
Mohd Naim said that the syndicates have been operating openly, especially on social media, to find ways to get a cut of the retirement savings.
“They will find some ways to try to go about our rules, but we will try our best to stop them,” he said.
He also noted that contributors should not pay unnecessary fees to the syndicates to withdraw their savings.
“You have been saving money for your retirement, why would you simply give it to them?
“Save the money for your retirement. This is really sad as some members are willing to give some commission to them.
“We will continue to create awareness on the matter so they will not be duped,” he said.
In 2015, EPF recorded 85 cases of attempted fraudulent withdrawals, followed by 152 cases last year and 63 cases as of June this year.
EPF did not reveal the total amount targeted.
Of the 63 attempts this year, most involved withdrawals for housing (41 cases), followed by incapacitation (10), education (six) and health (six).
Offenders can be charged under Section 59 of the EPF Act 1991 for making unlawful withdrawals, said Mohd Naim.
Under the Act, those found guilty of fraudulent withdrawals are liable to a maximum of three years’ jail or RM10,000 fine, or both.