KUALA LUMPUR – Close to 10,000 people fell victim to investment frauds resulting in losses of up to RM3 billion during the Movement Control Order (MCO) period in 2020.
Sadly, a majority of the “Zuttelo” scam victims were elderly citizens, mostly from the Chinese community.
Malaysian International Humanitarian Organisation secretary-general, Datuk Hishamuddin Hashim, said the syndicate took advantage of victims affected by the closure of the economic sector during the MCO.
Victims were introduced to the syndicate by friends, and it operated under various types of insurance-based investment schemes.
“Their target was mostly the Chinese community…there were also others who withdrew their Employees Provident Fund (EPF), while some borrowed from loan sharks to invest.
“Investigations are ongoing by police, and efforts must be taken to ensure there are no more victims,” he told the media after accompanying 180 victims to lodge reports at the Sentul district police headquarters.
Hishamuddin said police would conduct investigations under the Security Offences (Special Measures) Act 2012 and Prevention of Crime Act 1959.
He said that each victim invested between RM50,000 and RM4 million with the syndicate.
“If previously drugs were the number one enemy in the country, we must now announce that fraud or scams have taken the top spot.”
The majority of victims are now depressed, and, as a result of being scammed, some of them attempted suicide, while others are being harassed by the loan sharks. Some were even divorced by their partners, while some were left homeless.
Meanwhile, a 48-year-old victim, who identified himself as Chia, said he learned about the investment from an old friend.
According to the businessman, due to the MCO, all information regarding the scheme was offered online with promised returns of 17%.
He said his total losses amounted to RM500,000.
“In the first few months, they did pay a promised dividend, which made me believe that this investment was legitimate, but after investing a larger amount, they suddenly disappeared.”
He said began investing in December 2021 until August this year.
Another victim, Tan, a 44-year-old kopitiam owner, said the syndicate discouraged him from withdrawing his investment funds and urged him to continue investing.
“I invested RM500,000 from savings and family money. They insisted I continue investing to receive the promised dividend.” – The Vibes, December 5, 2022
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