Malaysia

Local authority official loses nearly RM300,000 in scam involving fake police and insurance agents

Victim in Johor duped into taking loans and transferring funds after being falsely accused of fraudulent insurance claims

Updated 4 months ago · Published on 22 Apr 2026 8:40AM

Local authority official loses nearly RM300,000 in scam involving fake police and insurance agents
The victim was then directed to apply for personal loans and to disclose his banking details, actions he complied with under the belief he was assisting an official investigation - April 22, 2026

A SENIOR local authority official in Johor has lost nearly RM300,000 after falling victim to a sophisticated scam in which fraudsters posed as insurance representatives, police officers and prosecutors.

The 48-year-old man, who serves as an Assistant Commissioner of Buildings at a local council in Muar, was first contacted in December last year by individuals alleging he had submitted a false surgical insurance claim.

According to Muar district police chief ACP Raiz Mukhliz Azman Aziz, the initial call was subsequently transferred to other individuals impersonating a “police officer” and a “Deputy Public Prosecutor”, escalating the deception and lending it apparent legitimacy.

“Victim claimed the suspects instructed him to do so for the purpose of an investigation and as bail for the ‘case’ he was facing,” he said in a statement.

The victim was then directed to apply for personal loans from banks and to disclose his banking details, actions he complied with under the belief he was assisting an official investigation.

Raiz Mukhliz said the man carried out multiple financial transactions in stages from 5 January until this month, transferring a total of RM273,600, which included borrowed funds as well as personal savings.

The fraud only came to light when the victim realised substantial sums had been depleted from his accounts.

He lodged a report at the Muar District Police Headquarters at 12.31pm yesterday.

“Further investigations are ongoing and the case is being investigated under Section 420 of the Penal Code,” Raiz Mukhliz said. - April 22, 2026

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