He Worked Hard and Saved Money Frugally, Now A Scammer Took It All

For Malaysian investors, the most dangerous investment scam may not begin with an obviously suspicious website or a promise of instant riches. It can start with something far more familiar: a phone call, a seemingly genuine investment opportunity and a small profit that makes the victim believe the system works.

That is what happened to a man in China's Zhejiang province, who lost 7.89 million yuan, or about RM4.74 million, in just six days after falling for a sophisticated investment scam.

The victim, identified as Chen, had spent about two decades building his savings through delivery work, small business activities and interest income. He lived a highly frugal lifestyle, continuing to stay in an old house and cutting spending wherever possible. Much of his money was saved for his family, particularly his children's education.

By April this year, he had accumulated 7.89 million yuan.

According to Chinese media reports, Chen was first contacted by an unknown caller who began talking about the low returns offered by bank deposits. The caller then suggested that investing in shares could generate significantly higher returns.

Soon afterwards, another person contacted Chen through QQ, claiming to work for a private equity fund.

The conversations gradually shifted towards investment opportunities promising higher returns. Rather than immediately asking Chen to transfer millions, the scammers first encouraged him to invest a small amount.

Chen saw more than 40,000 yuan in apparent profits on the platform. The early gains gave him confidence that the investment was genuine and lowered his suspicion.

The scammers then introduced what they described as an exclusive investment application with lower trading fees. They also encouraged Chen to increase his investment, claiming that larger deposits would generate greater returns.

He was eventually directed to a fake third party investment platform and told to transfer money into designated company accounts.

Between 14 and 19 May, Chen made six transfers.

The payments amounted to 1.89 million yuan, 2 million yuan, 500,000 yuan, 1.7 million yuan, 1.2 million yuan and 600,000 yuan.

Together, they totalled 7.89 million yuan, equivalent to roughly RM4.74 million.

Bank employees reportedly checked the transactions several times and warned Chen about the risks involved. Despite the warnings, he remained convinced that he was making legitimate business related investments and proceeded with the transfers.

The entire amount he had spent 20 years accumulating was moved out of his accounts in less than a week.

The turning point came on 21 May, when Chen received a message from the scammers thanking him.

He then attempted to log back into the investment application, only to discover that his account was no longer accessible.

That was when he realised that the profits he had seen were never real.

In one of the most striking details of the case, the scammers reportedly told him that he had been their biggest client ever.

Chen reported the matter to police, who traced part of the money to a company in Shaanxi that sells fire safety equipment.

Investigators found that the company itself had allegedly been deceived.

The business had handed over its corporate security token and password after being promised assistance with a loan application. Criminals subsequently gained access to the company's account and used it as a channel for moving funds obtained through the investment scam.

Police found that money transferred by Chen was quickly distributed to several other corporate accounts.

Those accounts have since been frozen, while the Haiyan County Public Security Bureau has opened a criminal investigation. Police are continuing to trace the movement of the funds and identify those behind the scheme.

A scam does not necessarily begin with a demand for a large deposit. Fraudsters may first establish trust, provide convincing information and even display small profits to make the victim believe the investment is genuine.

That initial profit can be the most dangerous part of the process.

Once confidence has been established, victims may become willing to commit much larger amounts, particularly when scammers create a sense of urgency or convince them that bigger investments will unlock higher returns.

For traders, one rule should remain non negotiable: never judge an investment platform by the profits shown on its screen.

Before transferring significant funds, investors should independently verify the broker through the free WikiFX application, the legal entity receiving the money, its regulatory status and whether the payment account actually belongs to the authorised investment company.