JOHOR BARU: A 70-year-old retiree lost over RM1.2mil after falling prey to an online initial public offering (IPO) investment scam here.
Johor police chief Comm M. Kumar said the senior citizen’s ordeal began in early June when he stumbled upon an IPO investment advertisement on Facebook promising high returns in a short time.
“The victim then engaged with an individual through WhatsApp to get more information about the investment and the profits offered.
“The victim became interested in the offer and decided to invest,” he said in a statement on Tuesday (Sept 24).
Comm Kumar added that the victim made his first investment in July and received the promised returns, leading him to believe that the investment was legitimate.
“He was then promised higher returns if he increased his investment.
“The victim then made several payments totalling RM1.244mil to various bank accounts as directed,” he said.
However, he never received any returns after that and was instead pressured into investing more.
“The victim suspected he had been scammed after he did not receive returns on the additional investment but instead, was pressured to invest more,” he said.
The retiree then lodged a police report on Monday (Sept 23).
The case is being investigated under Section 420 of the Penal Code for cheating, which provides for a prison sentence of between one and 10 years with whipping and a fine upon conviction.
Comm Kumar urged the public to be cautious and not get easily deceived by investment offers on social media or online that promise high returns in a short time.
“Verify with relevant agencies such as the police, Bank Negara and the Securities Commission to ensure the legitimacy of the investment and obtain further information about the offers.
“Additionally, use the 'Semak Mule' service available online to check the status of the bank accounts and phone numbers provided before proceeding with any transactions,” he said.
He advised the public to follow the Commercial Crime Investigation Department's (CCID) social media accounts to keep up to date on scammer tactics.
