PETALING JAYA: Tan (not his real name) has been a businessman for the past 40 years. Stock trading has also been part of his portfolio, with the now 70-year-old actively making investments.
But since late last year, he has lost RM6mil as a result of a string of bad choices.
It all began when Tan was added to a chat group that marketed itself as “helping investors make the right decisions”.
The group also bore a name similar to an authentic investment company.
“I assumed they got my number through another legitimate trading site I use.”
Tan was then told to download a trading app, which resembled another known platform with a similar name.
He was also encouraged by other “investors” to trust the platform, even sharing proof of their profits and withdrawals.
“The app’s interface looked professional, reflecting actual real-time market charts, live price feeds and portfolio updates.
“We even had virtual training sessions, informing us of market trends and which stocks to invest in,” he said of the transactions, which lasted about five months.
Tan even made several successful withdrawals during the early stages of his investments. Only recently did Tan realise that the whole thing was a fraud.
“I wanted to make a withdrawal, seeing I had good profits but was told to pay a 10% profit-sharing fee first,” he said, noting that the sum amounted to more than a million ringgit.
Upon payment, he attempted the withdrawal again but was told to pay a supposed “taxation” fee.
“This made me question the entire thing even more.”
Tan then demanded the platform operator provide an official letter on the matter but was served with one that did not even include his name or address.
“I then knew I was cheated. I quickly called the National Scam Response Centre hotline (997) and filed a police report, hoping my money could be retrieved within 72 hours.
“However, I was told the transactions I made were through mule accounts and everything was gone,” he said.
Tan then tried warning fellow “investors” in the chat group but found out that they too were part of the scheme.
“I just hope no other people fall for such scams.”
Universiti Sains Malaysia Cyber Security Research Centre director Prof Dr Selvakumar Manickam said potential scam victims are usually profiled and targeted based on data shared publicly online. He said scammers are good at psychological profiling – searching for specific traits like excessive trust, loneliness, ambition for quick wealth and even financial vulnerability.
“Users who overshare provide what scammers need on a silver platter.
“Information harvested from data breaches, widespread unsolicited messaging campaigns and targeted affinity fraud within specific communities are also common strategies,” he said when contacted.
Other signs of fraudulent schemes include the difficulties of withdrawing funds invested, coupled with demands for extra fees or taxes.
“These sophisticated digital schemes frequently use convincing fake websites or apps to appear legitimate,” he said.
Criminologist Datuk Dr P. Sundramoorthy said scammers use various techniques to psychologically manipulate both victims and secondary participants.
“The apparent legitimacy and early payouts function as compliance mechanisms, reinforcing trust before exploitation begins.”
He added that even with the warning signs, victims would tend to have “psychological discomfort” when faced with evidence that contradicts their prior decisions.
“They resolve such feelings by doubling down on the belief that their investment is legitimate. This phenomenon also intersects with victim-offender dynamics where emotional manipulation creates a dependency or false relationship of trust,” he added.
