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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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Malaysia is witnessing a sharp rise in crypto investment scams, with authorities warning that professionals and senior citizens are increasingly becoming prime targets.
According to a report from TheMalaysianReserve, Bukit Aman Commercial Crime Investigation Department (JSJK) Director Datuk Seri Ramli Mohamed Yoosuf has urged caution, particularly for investors over 60 years old who might be lured by the promise of high returns.
Victims Of Crypto Investment Scams Increasing
Ramli highlighted a recent case in which a 74-year-old lost tens of millions of ringgit after falling victim to a fraudulent scheme.
Many of these scams operate under the illusion that purchasing multiple cryptocurrency coins, each worth hundreds of thousands of ringgit will guarantee enormous profits.
However, as he clarified, “no investment is made; it’s purely a scam.”
Beyond cryptocurrency fraud, phone scams remain a growing concern. Scammers often impersonate trusted authorities such as financial regulators, banks, and law enforcement agencies to manipulate victims into handing over their money.
Ramli emphasized that legitimate agencies such as the Royal Malaysia Police, the Inland Revenue Board, and Bank Negara Malaysia do not operate through elaborate multi-step phone calls where victims are transferred between different departments.
The increasing complexity of these scams can be attributed to rapid technological advancements.
Cyber-enabled and cyber-dependent crimes have become more sophisticated. They often leverage AI-based tools and deepfake technology to convincingly impersonate officials or reputable cryptocurrency projects.
Experts warn that these tactics will likely evolve, making scams even more difficult to detect.
Growing Threat of Unregulated Investment Schemes
The Malaysian Digital Asset Platform Association (MDAPA) has raised concerns that scammers are exploiting social media platforms to prey on vulnerable groups, particularly senior citizens seeking financial security in retirement.
Many fraudulent actors impersonate agents of legitimate digital asset exchanges, tricking investors into transferring funds under false pretenses.
MDAPA stresses that approved exchanges will never guarantee investment returns, flaunt displays of wealth, or use third-party intermediaries. In fact, its rigorous regulatory approval process has sent top exchanges like ByBit away.
Investors must conduct all transactions themselves via official exchange platforms or mobile applications.
The Securities Commission Malaysia has approved only six digital asset exchanges, including HATA Digital, Luno Malaysia, MX Global, SINEGY DAX, Tokenize Technology, and Torum International.
Additionally, two initial exchange offering platforms, Pitch Platforms and Kapital DX, have been approved.
Investors are strongly advised to check the Securities Commission Malaysia’s official website for a list of regulated digital asset players before making any financial commitments.
Malaysia’s Countermeasures Against Fraud
In response to the surge in investment scams, Malaysian authorities are leveraging advanced technology to track illicit transactions and enhance fraud detection.
AI-powered systems and blockchain analytics are being integrated into law enforcement strategies to identify fraudulent activities more effectively.
Authorities have also intensified enforcement efforts, leading to many arrests.
According to the report, the JSJK reported 23,000 successful arrests linked to scam syndicates across Malaysia last year.
Many of these fraudulent operations are run from luxury condominiums in high-density areas such as Selangor, Kuala Lumpur, and Penang, further complicating tracking and enforcement efforts.
Beyond cryptocurrency fraud, Malaysia is also grappling with a rise in illegal Bitcoin mining activities.
Authorities have uncovered numerous cases of miners illicitly tapping into electricity grids, resulting in hundreds of millions of ringgit in financial losses. The most recent one was on February 13, following a blast caused by the miners.
This further highlights the broader issue of financial crimes linked to the crypto industry.
To combat these threats, Malaysian authorities urge the public to stay vigilant and report suspected scams to the Commercial Crime Investigation Department via 03-26101559 or the National Scam Response Centre at 997.
