Malaysia SC Reports 3,380 Complaints on Scams and Unlicensed Activities as of Q3 2024

The Securities Commission Malaysia (SC) has received 3,380 complaints and inquiries on scams and unlicensed activities by the third quarter of 2024, marking a 28% increase from the previous year. This rise highlights the evolving sophistication of fraudulent schemes despite ongoing regulatory interventions.

In a statement, SC's Executive Director and General Counsel, Yew Yee Tee, emphasized the growing complexity of these cases, which now often involve deepfake technology and evolving modus operandi.

"The positive side to this is that we also see greater awareness and skepticism among the public where many of these complainants and enquirers coming forth to the SC have not fallen victim to these scams (as compared to previous years),” she said, though, she also noted that scams and unlicensed activities continue to be a growing concern.

"In 2023, the SC received 3,262 public complaints and enquiries on various scams and unlicensed activities, a 321 per cent increase from 2019,” she said.

Yew also warned about the dangers of relying on financial influencers on social media, who often lack proper investment knowledge and, in some cases, may require a license from the SC but are not licensed.

Additionally, Yew cautioned against renting out bank accounts to scammers, noting the severe penalties involved. "Most scams share a common element — the use of mule bank accounts. Mules can face fines of RM10,000 and jail terms of at least one year if found guilty," she said. Those found guilty will be barred from maintaining or opening bank accounts, making it difficult for them to seek employment or operate a business.