KUALA LUMPUR: Five investigation papers have been opened to probe fraudulent activities in connection with an app that offers big discounts to users for the purchase of goods and services.
Police secretary Deputy Comm Datuk Noorsiah Mohd Saaduddin said consumers have to deposit a certain amount of money to use the app, which was introduced in 2020.
“They will be given savings of up to 50% on each purchase, in addition to receiving reward points that can be redeemed through purchases or in cash.
“At the beginning, the transactions and redemption proceeded smoothly until the end of last year when consumers failed to make purchases or redeem their points,” she said in a statement yesterday, Bernama reported.
Noorsiah said the case, which involved nationwide losses of over RM508,000, is being investigated under Section 420 of the Penal Code for cheating, which carries a maximum imprisonment of 10 years, whipping and a fine upon conviction.
She added that the Domestic Trade and Consumer Affairs Ministry had in October last year said companies involved in such activities would be investigated under Sections 4(1) and 27B of the Direct Sales and Anti-Pyramid Scheme Act 1993.
Last Friday, it was reported that over 100 people lost nearly RM5mil after they were duped into joining an online rewards scheme that offered discounts for the purchase of goods and services through a dubious company.
The outfit used names of famous people, royalty, former government officers and religious leaders to attract consumers.
