Malaysia

Man loses over RM400,000 in social media investment scam linked to fake stock trading scheme

The victim was in Jeddah, Saudi Arabia, when he came across an investment advertisement on TikTok promoting stock market opportunities

Updated 2 months ago · Published on 05 May 2026 12:10PM

Man loses over RM400,000 in social media investment scam linked to fake stock trading scheme
Case highlights a growing trend of fraudulent investment schemes circulating on platforms such as TikTok and WhatsApp - May 5, 2026

A MAN has suffered losses amounting to RM411,000 after falling victim to an online investment scam involving promises of high returns and a fraudulent initial public offering (IPO) scheme promoted via WhatsApp, police said.

Authorities said the victim was initially approached through social media and later drawn into direct communication with the suspect, who convinced him to participate in an investment scheme offering lucrative short-term profits.

WhatsApp was used as the primary channel of communication, where the victim was persuaded to continue investing after being assured of attractive returns.

“The victim then contacted the suspect via WhatsApp and believed in the promised investment offer, which included substantial returns within a short period,” he said in a statement.

Police said the victim proceeded to make 17 separate bank transfers between 5 March and 15 April 2026 to five different bank accounts, amounting to a total of RM660,000.

“The total amount of money transferred was RM660,000, however the victim only received returns of RM249,000,” he said.

Investigators said suspicion arose when the victim was later instructed to inject additional funds, allegedly to purchase shares in an initial public offering valued at RM2 million, which was said to guarantee higher profits.

Police added that checks revealed the first receiving account was opened at a bank branch in Padungan, Kuching.

As a result, the victim incurred total losses of RM411,000. The case is being investigated under Section 420 of the Penal Code for cheating.

Authorities have once again urged the public to exercise caution when approached with investment opportunities online and to verify legitimacy before transferring any funds. - May 5, 2026

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