Malaysia

Contractor loses RM1.2 million in elaborate stock investment scam

After several investment tutorial sessions, the instructor in the WhatsApp group offered members an opportunity to invest in a new stock scheme, promising guaranteed returns

Updated 4 months ago · Published on 25 Feb 2026 1:03PM

Contractor loses RM1.2 million in elaborate stock investment scam
Authorities warn public as victim deceived by social media-linked syndicate - February 25, 2026

A CONTRACTOR in his 60s has been defrauded of RM1.2 million after falling victim to a sophisticated syndicate claiming to offer free stock investment lessons.

Director of the Commercial Crime Investigation Department (JSJK) Datuk Rusdi Mohd Isa said the victim first encountered the scheme on Facebook on 2 October 2025 and was attracted by an online offer to learn stock trading at no cost.

He clicked the link provided and was added to a WhatsApp group organised by the scammers.

“After several investment tutorial sessions, the instructor in the WhatsApp group offered members an opportunity to invest in a new stock scheme, promising guaranteed returns and compensation in the event of losses,” Datuk Rusdi said in a statement.

The victim, intrigued by the offer, received a WhatsApp call from a woman instructing him to download an application to begin investing. Between 27 November 2025 and subsequent dates, he transferred funds in stages to six separate accounts linked to the company and its affiliated businesses.

“In January 2026, the victim attempted to withdraw RM600,000 after the app indicated that his profits had multiplied significantly. He was asked to pay a 10 percent commission upfront. After the payment, he was informed that Bank Negara Malaysia had blocked the withdrawal and that an additional RM168,000 tax payment was required,” Datuk Rusdi explained.

Growing suspicious, the victim refused further payments. Convinced he had been scammed, he reported the loss of RM1.2 million to the police on 13 February.

The case is now under investigation for criminal breach of trust under Section 420 of the Penal Code.

“This incident serves as a stark reminder to the public to exercise extreme caution when engaging with investment schemes promoted online,” Datuk Rusdi added, urging individuals to verify the authenticity of offers before transferring funds. - February 25, 2026

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