KUALA LUMPUR: The Securities Commission (SC) has disclosed the findings of its investigation into 10 clone firm scams, to arm buyers with larger awareness on the modus operandi of those scams so as to spot and keep away from them.
In a press release, the regulator mentioned clone firm scams are typically corporations that fraudulently impersonate a official or a licensed entity, together with misusing the identify and brand of a public listed firm (PLC), company credentials and web site, to dupe buyers and solicit funds.
The SC’s investigation exhibits that the modus operandi would usually contain:
- Putting out commercials on social media resembling Facebook to lure buyers with funding packages guaranteeing excessive returns and seemingly managed by “licensed intermediaries”.
- Using giant variety of “agents” to lure potential victims, and soliciting investments via Whatsapp chats as soon as the victims clicked on the hyperlink offered.
- Requesting victims to deposit monies for the “investment schemes” into financial institution accounts held by mule account holders to layer and launder the unlawful proceeds obtained.
At least 32 mule account holders have been recognized to be concerned in facilitating the operators of those scams, in accordance to SC’s investigation.
Its investigation revealed that the rip-off operators have generated a considerable amount of unlawful proceeds given the big variety of victims.
“In one of the scams, approximately RM3.6mil have flowed through one mule bank account within a period of six months.
“Based on the 154 bank statements reviewed, the SC also found that in total, at least RM24.7mil may have flowed to several ‘masterminds’ of these scams,” SC mentioned.
The findings additionally highlighted that the clone firm scams will goal victims/buyers who’re keen to half with a small quantity of monies however with the expectation of constructing enormous returns in a brief time frame.
Given that a lot of the victims who have been scammed misplaced solely a small quantity of monies, many have been reluctant to come ahead and cooperate with the SC in its investigation into the scams.
Out of the 24 victims recognized, 15 of them declined to cooperate with the SC.
“
To clamp down on these illegal activities, the SC is currently reviewing the available evidence and considering various enforcement options against those involved in the clone firm scams,” it mentioned.
SC has reiterated that buyers too have to play their position by exercising vigilance and scepticism when evaluating funding alternatives resembling checking the legitimacy of people or entities who approached them to spend money on any funding scheme or funding alternatives marketed via social media and Whatsapp chats.
More importantly, buyers are additionally suggested to by no means deposit cash into private financial institution accounts of any people when requested to accomplish that.
Investors can contact the SC’s shoppers and investor workplace at 03-6204 8999 or [email protected] to lodge experiences on suspected scams.
