Financial Fraud Awareness

You can report directly to Bank Negara Malaysia via the following communication channels:

Web: eLINK Form

Call: 1-300-88-5465 (1-300-88-LINK)

Fax: 03-2174 1515.

With the Internet becoming a common part of daily life, it should be no surprise that fraudsters have made cyberspace a prime hunting ground for new victims.

The Internet has made it simple for fraudsters to reach out to millions of potential victims at minimal cost.

Many of the online scams we see today are merely modified versions of old schemes that have been used to fleece offline investors for years.

Operators of illegal internet investment schemes lure unsuspecting victims to make on-line investments or receive investment advice online, by offering investment opportunities above a market rate of return and will claim that their schemes are at zero or very low risk.

When questioned, most illegal operators will either claim to be foreign operators that do not require licenses from Malaysian regulators to operate their business, or claim that they already have the appropriate license from relevant authorities/regulators.

Unsuspecting victims of these schemes would be enticed as operators will pay them high returns at the initial stage and this is used as a tactic to lure and recruit new investors.

The survival of this scheme is dependent upon the recruitment of new depositors, i.e., funds obtained from new depositors will be used in paying dividends to the existing depositors. Therefore, the scheme will fail when there is no contribution of funds from new depositors; and

However, the operator will eventually abscond with deposits collected when he feels that the scheme is about to fail, thus leaving the depositors at the losing end.

These operators are not licensed to receive deposits by Bank Negara Malaysia or licensed to offer investment advice from the Securities Commission related to fund management, securities and futures.

• Remember the golden rule - if it sounds too good to be true, it's probably a lie;
• Deal only with licensed financial institutions and authorised dealers;
• Check with the relevant authorities before investing/ depositing;
• Don't be pressured or rushed to invest;
• Be extra careful with investments over the internet;
• Be sceptical of any investment opportunity that is not in writing; and
• In case an investment has been made, keep copies of all the investment and communications

The approach by the operators may have been made 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 members of the public to participate in the schemes and the investors may not be given copies of any documentation including agreements by the operators.

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 the earlier depositors.

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

These schemes will fail eventually when there are no new deposits being continually received by the operators. At such time, the "get-rich-quick" schemes will collapse and the depositors or investors will lose their investments.

You can report directly to Bank Negara Malaysia via the following communication channels:

Web: eLINK Form

Call: 1-300-88-5465 (1-300-88-LINK)

Fax: 03-2174 1515.

A total of 400 complaints on unauthorised withdrawals were received by Bank Negara Malaysia in 2009 (165 similar complaints in 2008). Based on investigations, all of these cases were due to customers knowingly or unknowingly divulging their personal information such as personal identification numbers (PIN) and passwords to third parties or fraudulent parties.

The transactions involved were genuine, using complainants' account information and followed the required process. CCTV recordings had captured the complainants activating access to Internet banking at ATMs.

Most complainants were not Internet savvy and failed to understand that their own actions had led to the fraudulent withdrawal of funds from their accounts.

In most cases, victims of unauthorised withdrawals had received an unidentified SMS (from fraudster) to inform them that they have won a cash prize.

To claim the promised cash prize, the victim is informed that they have to open an internet banking account.

The victim then contacts the fraudster and the fraudster will provide a step-by-step guide on how to register and activate their internet banking account using the ATM terminal.

At point of registration at the ATM terminal, the victim will be given an internet banking personal identification number (PIN). The fraudster will ask the victim for this PIN and use it to create an internet banking account for the victim.

The fraudster will then ask the victim to register the fraudster’s mobile phone number in order to obtain an Authorisation Code to enable transfer of funds via internet banking.

This will result in the Authorisation Code being sent via SMS directly to the fraudster’s mobile phone. The victim has now unknowingly provided the fraudster with full access to their banking account.

Do not respond to 'too good to be true" SMS or Whatsapp or call from unknown person;

Be skeptical of any SMS claims that you have won cash prizes in competitions you never enter;

Be extra careful - protect your personal banking details and never reveal your PIN to anyone; and

In case an arrangement has been made, keep copies of all the communication records and documentation

You can report directly to Bank Negara Malaysia via the following communication channels:

Web: eLINK Form

Call: 1-300-88-5465 (1-300-88-LINK)

Fax: 03-2174 1515.

Victim receives SMS or Whatsapp or telephone call: Requesting victim to confirm a credit card transaction for the purchase of goods or services purportedly charged to the victim's credit card.

When victim calls the telephone number provided in the SMS, the fraudsters identify themselves as agents of a commercial bank, and again, ask the victim to confirm whether the credit card transaction had taken place.

When victim informs the fraudster that he has no such credit card or transaction, the fraudster will start to sound concerned and will advise victim to lodge a report with Bank Negara Malaysia's "Unit Kad Kredit Palsu", or with the commercial bank's "credit card management department". The fraudster will provide the victim with the telephone number for the "Unit Kad Kredit Palsu".

When victim calls the telephone number provided, they are greeted by a automated voice message which identifies the company as Bank Negara Malaysia, and the call will then be answered by someone claiming to be a Bank Negara Malaysia officer. This officer will request for information relating to the victim's banking and credit card accounts under the pretence of lodging a complaint on behalf of the victim.

The fraudsters now have sufficient information to illegally transfer funds out of the victim's bank account or to conduct illegal transactions through the victim's credit card account.

Do not respond to SMS or call from unknown person asking for your credit/debit card details.

If someone claiming to be from your card service provider calls you and asks you to confirm the security numbers on the back of the card (the last three digits on the back of the card), you should end the call immediately;

Be sceptical - Bank Negara Malaysia officer will never call you to ask for your credit/debit card or banking particulars; and

In case an arrangement has been made, keep copies of all the communication records and documentation.

You can report directly to Bank Negara Malaysia via the following communication channels:

Web: eLINK Form

Call: 1-300-88-5465 (1-300-88-LINK)

Fax: 03-2174 1515.

You can report directly to Bank Negara Malaysia via the following communication channels:

Web: eLINK Form

Call: 1-300-88-5465 (1-300-88-LINK)

Fax: 03-2174 1515.

If someone claiming to be from Bank Negara Malaysia calls you and talk you into joining any investment schemes or suspected fraudulent activities, you should end the call immediately;

You may also verify the claim or identity of the said 'Bank Negara Malaysia officer' by calling the number provided below;

Be sceptical - Bank Negara Malaysia officer will never call you to promote any 'too good to be true' investment schemes; and

In case an arrangement has been made, keep copies of all the communication records and documentation.

You can report directly to Bank Negara Malaysia via the following communication channels:

Web: eLINK Form

Call: 1-300-88-5465 (1-300-88-LINK)

Fax: 03-2174 1515.