Lure of big returns leads to RM500,000 loss

Disgruntled lot: Musa (left) and representatives from Malaysia International Humanitarian Organisation accompanying the victims after lodging reports at the Sentul district police headquarters, Kuala Lumpur.

KUALA LUMPUR: Coffee shop operator Tan was suffering from a drop in business during the movement restrictions imposed at the height of the pandemic when he came across an online investment scheme that was offering at least 16% monthly returns.

He invested RM12,700 and even met the scheme’s big boss Deric Chng, who convinced him that the money was made through strictly legal means via gaming activities done abroad.

Tan then got his family members to sign up too.

They all lost a total of RM500,000 to the syndicate.

The online investment scam, marketed as online gaming activities guaranteed through insurance, has reportedly caused over 10,000 victims to lose billions.

The syndicate called Zuttelo offers investors a “too-good-to-be-true” true 16% monthly returns through online gaming activities including baccarat.

The “investment” was also allegedly covered by insurance with investors told there was no risk of losing their money.

“My friend approached me during the MCO in March 2020 and I thought, with businesses not able to operate, it was a smart decision to invest and have fixed returns coming in every month,” said Tan when met outside the Sentul police headquarters yesterday.

“I initially invested RM12,700 and then got my family members and a few friends to join.

“I waited for five months before I made my second investment, but I then noticed that every time I tried to make a withdrawal, they would offer me promotions to get even higher returns,” he said.

He has now realised that those were tricks by the syndicate to trap him into not withdrawing his investment.

He said all payments were done via online cash transfers through bank accounts provided by the syndicate.

A businessman who wanted to be known as Chia, 48, also lost over RM500,000 to the investment scam.

“At first the scheme offered returns of about 17%.

“They told me the money was used to place bets, but if we lost our bets it would be covered by insurance which was part of the deal.

“I started investing last year but we lost contact with the operator in August this year,” he said, adding that he was disappointed that Chng is yet to be arrested.

Chia said he hoped the authorities would quickly nab the syndicate operators.

“They must take stern action against those responsible,” he said.