Scammers Demand 'Tax' Before Withdrawal, 64-Year-Old Investor Discovers Fraud

A 64-year-old Singaporean engineer recently reported to the Malaysian police that he lost S$580,000 to an online investment scam.

According to the victim, in December 2023, he saw and clicked on an investment advertisement on Facebook. Through the ad, he joined a WhatsApp group and was given an overview of the “investment” process.

He was told that all he had to do was pay for the initial investment and that a professional financial company would manage the investment for him and bring in a return of 5% to 12%.

Lured by high profits, the engineer downloaded an application for registration according to the fraudster's guidelines. The app reportedly allowed the investor to check the status of his investments and profits at any time.

By the spring of 2024, he had transferred about S$520,000 to a Malaysian bank account. However, he did not realize he was being scammed until he found the profit shown on the trading account.

In addition, the fraudster demanded ‘tax’ before he could have his money. The scammers cut off contact with the victim until they realized he was unwilling to pay.

On October 17, the victim reported the case to Malaysian police.

Commenting on such online investment scams, Malaysian police warned people to be extra careful. “They should verify the legitimacy of companies or investments with relevant bodies such as the Securities Commission and Bank Negara Malaysia.

“We also encourage the public to use the online Semak Mule service to check the status of phone numbers or bank accounts for records of fraudulent activity.”