RM238,000 Lost to a Fake Stock Scheme | Don't Be The Next Victim!

A private sector employee in Miri has lost RM238,000 in personal savings after falling victim to a fake stock investment scheme linked to a non-existent company allegedly based in China.

According to police, the report was lodged on 25 December with the Miri Commercial Crime Investigation Department. The victim, a 40-year-old local man, was persuaded to take part in what he believed was a legitimate overseas stock investment opportunity.

Investigations show that the scheme followed a familiar pattern used by many online investment scams. The suspects first offered small but convincing returns to build trust. These early payouts gave the impression that the investment was genuine and performing well. Encouraged by the apparent success, the victim was persuaded to increase his capital over time.

Over a period of transactions, the victim transferred funds ten times into two different third-party bank accounts provided by the suspects. In total, the amount reached RM238,000. The payments were made gradually, reinforcing the belief that the investment was progressing as expected.

The deception became clear only when the victim attempted to withdraw the supposed profits. At that point, he found himself unable to access any funds. Communication with the individuals behind the scheme reportedly stopped, confirming that the investment did not exist.

Police have classified the case as cheating under Section 420 of the Penal Code. If convicted, those responsible may face a prison sentence of between one and ten years, whipping and a fine. Investigations are ongoing as authorities work to trace the flow of funds and identify those involved.

The case reflects a wider trend of online investment scams that exploit public interest in foreign markets, particularly those portrayed as fast-growing or exclusive. Fraudsters often use social media, messaging apps and online advertisements to reach potential victims. By presenting the scheme as an overseas opportunity, scammers add a layer of credibility and urgency, making it harder for victims to verify the details.

Authorities have once again urged the public to be cautious when approached with investment offers that promise high or quick returns. Legitimate investments carry risk and do not guarantee profits. Members of the public are encouraged to learn basic investment principles and to check with licensed regulators before committing any funds, especially when deals are promoted through social media platforms.

Police also reminded the public to act quickly if they suspect a scam. Victims of cyber-related fraud, including investment scams, phone scams, romance scams, e-commerce fraud and fake loan offers, are advised to contact the National Scam Response Centre (NSRC) at 997 as soon as possible. Early reporting is critical, particularly if money has just been transferred to suspected mule or syndicate accounts.