In the frothy world of coffee investments, not all brews promise a rich return.
Recently, it was claimed that some investors found themselves in hot water after pouring their savings into a scheme involving coffee vending machines.
Is it true that coffee vending machine fraud has led to over RM6mil in losses?
VERDICT:
TRUE
This is in fact true, with Selangor police chief Comm Datuk Hussein Omar Khan saying that police in the state have received 101 reports related to coffee vending machine investment fraud cases involving total losses amounting to RM6.7mil from January to April this year.
He said that the initial investigations found that the victims were enticed by detailed explanations and representations about the vending machine investment offered by the suspect, which allegedly promised high returns.
Comm Hussein added that those who were convinced by the scheme proceeded to join the investment programme and made payments into bank accounts provided by the suspect.
"The victims were unsure whether the investment was legitimate. Initially, they received some returns, but over time, the payments stopped," he said in a statement on Thursday (June 5).
The cases are being investigated under Section 420 of the Penal Code for cheating.
Comm Hussein said the investigation papers had been referred to the Deputy Public Prosecutor's Office, which decided that no charges would be filed under fraud-related offences.
In light of this, he advised the complainants to pursue civil action to contest any breach of the contract agreement signed with the investment company and to recover their investments.
He also reminded the public to be cautious of investment schemes promising unrealistic returns, especially those promoted through financial apps or platforms not approved by Bank Negara Malaysia or the Securities Commission Malaysia.
For verification, advice, or to lodge a complaint, the public can contact the National Scam Response Centre (NSRC) at 997.
