PETALING JAYA: Complaints and enquiries on scams and unlicensed activities shot up by over 300% between 2019 and 2023, according to the Securities Commission (SC).
The commission’s Investors Alert List sighted by The Star also revealed that some 15 sites were flagged by the SC for operating as potential clone entities so far this year.
Clone entities are outfits that misuse the name and credentials of legitimate financial and investment bodies.
In the SC’s 2023 annual report, it was revealed that the regulator received 3,262 complaints and enquiries on scams and unlicensed activities – a 321% increase within those four years.
The SC said social media platforms such as Facebook and messaging apps like Telegram continue to be the primary mode for perpetrators to carry out their illegal activities.
“A new modus operandi observed in 2023 was the use of e-wallets and cryptocurrency as the mode of payment involving investment scams, compared with the mule bank accounts that were used previously.
“This may be designed to avoid easy detection and prompt interventions by enforcement agencies,” it added.
In addition to taking action based on complaints and enquiries, the SC has also dedicated a unit to proactively monitor and detect unlicensed activities and online scams targeting Malaysians.
As of Dec 31, 2023, a total of 569 URLs offering unlicensed activities to Malaysians were detected online.
This was a 49% jump from the 382 URLs detected in 2022.
“Of these, 51% were from Telegram, 27% from Facebook, 9% from Instagram and 13% from other sources such as websites, YouTube, and TikTok,” the SC said in its report.
The issuance of cease-and-desist notices, social media interventions, inclusion in the SC’s Investor Alert List, and the blocking of websites with assistance from the Malaysian Communication and Multimedia Commission (MCMC) were among the actions taken against such sites.
Other actions were requests to block Telegram, Facebook and Instagram accounts; referrals to other agencies or foreign regulators; and lodging police reports.
“The SC has and will continue to proactively disrupt the activities of scammers and operators of unlicensed activities,” it said.
In this regard, the SC includes the names of entities and individuals found to be carrying on scams or unlicensed activities on its Investor Alert List as soon as possible – in most cases within 48 hours of receiving a complaint, it added.
The regulator noted that while some unlicensed activities are carried out locally by Malaysians with a local presence, there are also foreign entities carrying out unlicensed activities in Malaysia.
To create greater awareness, the SC said it has released a “more robust, dynamic and mobile-friendly” Investor Alert List called the Investment Checker, which serves as a one-stop centre for the public to check and verify the legitimacy of entities and individuals.
It has also set up a Scam Meter page and does radio and television interviews on scams and unlicensed activities.
Recently, the Finance Ministry told Parliament that the SC had blocked nearly 200 social media sites and over 100 websites linked to illegal investment schemes, placing 184 entities on a watchlist and filing charges against some.
Offshore platforms were blocked with help from MCMC, while the SC advises public awareness on fraudulent tactics.
