Scammers using shell companies, fake businesses to move their money, says CCID chief

KUALA LUMPUR: Beyond just making use of mule account holders, scammers are now setting up shell companies and fake businesses to move their ill-gotten gains.

"So far we have detected 86 shell companies and 70 dubious businesses used by scam syndicates," Comm Datuk Seri Ramli Mohamed Yoosuf told a press conference on Monday (Nov 20).

The Bukit Aman Commercial Crime Investigation Department (CCID) director said there is a need to impose stricter procedures and requirements in setting up businesses.

ALSO READ: NFP requires certain policies to be effective, say experts

"Requirements such as checking for criminal and financial records should be considered as well by the relevant authorities," he added.

Comm Ramli said stricter rules and regulations should also be imposed before any company or business could open a bank account.

"We hope the government can consider imposing the shared responsibility framework introduced by the Singapore government to curb phishing scams.

ALSO READ: Government needs to do more against scammers

"Through this framework, financial institutions that fail to play their part are liable for the losses incurred by victims," he said.

He also cited an example of an investment scam using the Malaysia Investment Development Authority (Mida) name in Melaka on Nov 9.

"The victim suffered RM585,700 in losses after joining the investment scam, which promised high returns within three to six hours of investment;the investigation revealed that the syndicate has been operating since October last year via social media sites.

ALSO READ: S’pore telcos, banks to be accountable to scam victims if found negligent

"They offered investments starting from RM300 up to RM2,000," he said.

Comm Ramli said 28 police reports have been lodged against the syndicate, involving losses of RM1.2mil.

"Mida has also issued a warning on its social media page and website of a syndicate using its name," he said.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Nation

Biden drops re-election bid, does not endorse Harris as candidate
Firemen clear up chemical spill on remote Tawau road
Foreigner detained for pickpocketing at KLIA Terminal 1
Man nabbed after wife reports him for possessing gun after argument
Fire breaks out at Pulau Burung landfill
Poh Yu Tian, 15, is youngest Malaysian to get International Master chess title
Paralympians deserve same rewards as Olympians if they bring home gold, says Adam Adli
Four wardens, two students escape unhurt in Kapit dorm fire
Cyberbullying: Govt to take action against social media platforms, says Fahmi
RM1mil allocated to rebuild bridges in Sabah damaged during floods

Others Also Read