Go to Bank Negara Malaysia main website
Financial Fraud Alert logo
Site Map  |  Useful links  |  FAQs   |  Report fraud   |  Return to BNM website
Back to Financial Fraud Alert Homepage      What is Financial Fraud?      Avoid becoming a victim      Enforcement action
Welcome to the Financial Fraud Alert Website of Bank Negara Malaysia.
Financial Fraud Alert
 > Frequently Asked Questions (FAQs)
PRINT      EMAIL

Frequently Asked Questions (FAQs)

  1. What are the types of investments and financial fraud activities that come under Bank Negara Malaysia's jurisdiction?

  2. What are the risks involved in participating in these illegal schemes?

  3. Where can I find the list of licensed institutions?

  4. Any pointers to the general public on how to detect an illegal scheme? 

  5. What should you do if you're a victim of these schemes?

 

1. What are the types of investments and financial fraud activities that come under Bank Negara Malaysia's jurisdiction?

  • Under Bank Negara Malaysia's jurisdiction, the activities include illegal deposit taking, illegal foreign currency dealings, illegal remittances, illegal insurance business and illegal money changing business.

  • Other fraudulent activities related to Bank Negara Malaysia but, are usually referred to and handled by the police are: cheating (related to financial matters), forged currency notes, forged insurance cover notes, credit card frauds and Internet frauds such as bogus websites or ‘phishing' scams.

^back to top

 

2. What are the risks involved in participating in these illegal schemes?

  • In most cases, the victims of these schemes would have lost their money as they may have used their life savings or obtained loans from banks or cooperatives.

  • Those who actually make a "profit" at an earlier stage of the scheme is advised to re-invest their gain. Ultimately, their investment will vaporise.

  • These people who are cheated would become a burden and cause grief to themselves and their family members.

  • These people may also incur additional costs as they may have to employ lawyers to bring a civil suit against the perpetrators.

  • Those who had acted as middle men or agents would run the risk of themselves or their family members being threatened or face physical harm if the scheme fails.

^back to top

 

3. Where can I find the list of licensed institutions?

^back to top

 

4. Any pointers to the general public on how to detect an illegal scheme?

Members of the public are advised to be careful and not fall prey to these schemes. Be careful if these operators approach you with the following proposals:

  • The approach may have been by mail, telephone, Internet or in person, but the intention is always the same, that is, to take money from unsuspecting victim for goods or services that they have no intention to provide.

  • Schemes which promise interest rates, returns or profits, which are much higher than the returns offered by licensed financial institutions for their deposits.

  • The promises of high returns are aimed at attracting the public to participate in the schemes and the investors may not be given any copies of the complete agreements by the company.

  • There is also no assurance that the operators of such schemes can continue to pay the high returns.

  • At the beginning of such schemes, the operators are able to use money received from subsequent depositors to pay high returns or to repay the principal amount to earlier depositors.

  • However, the operators cannot invest the deposits in equally or more lucrative ventures or investments and therefore cannot sustain the high returns or repayment promised to their depositors.

  • Please note that these schemes will fail if there are no new deposits being continually received by the operators. At that time, such "get- rich-quick" schemes will collapse and the depositors or investors will lose their investments.

^back to top

 

5. What should you do if you're a victim of these schemes?

  • Members of the public are advised to be careful and not to fall prey to the above mentioned schemes. If members of the public have fallen victim to any of these illegal schemes, Bank Negara Malaysia advises them to do the following:

  • Firstly, they are advised to lodge a police report.

  • Then, to report to the relevant enforcement agency.

  • Members of the public must keep all the related documentations of all their investments such as bank-in slips, deposit slips, agreements, vouchers that they received from the company or perpetrator so that they can use the documents to take action against the company.

  • This includes the details of the officers or key persons in the company. This information could prove useful for enforcement purposes.
^back to top

Report fraud & scam, call 1300.88.5465

What Do You Want To Do

What Do You Want To Do

I want to find out more on types of financial fraud and how to protect myself

I'm a victim of financial fraud, what should I do?

I want to report a fraud

I want to find out what actions have been taken by Bank Negara Malaysia to date

 
Terms of Use | Privacy Statement | Disclaimer Copyright © 2010 Bank Negara Malaysia. All rights reserved.