Malaysia

Vending machine investment scam: Police probe fraud worth RM6.7 million as over 100 reports lodged

In Selangor, people were lured with promises of high returns on coffee vending machines; police advise civil action as criminal charges not pursued

Updated 1 year ago · Published on 05 Jun 2025 1:57PM

Vending machine investment scam: Police probe fraud worth RM6.7 million as over 100 reports lodged
Victims were enticed after receiving presentations and representations about the supposed investment opportunity from the scheme’s promoters - June 5, 2025

SELANGOR police have received 101 reports involving a coffee vending machine investment scheme that has left victims out of pocket by a collective RM6.7 million, authorities confirmed on Thursday.

The scheme, promoted by two companies, promised high returns in exchange for purchasing and investing in self-service coffee vending machines. According to Selangor Police Chief Datuk Hussein Omar Khan, reports were filed between January and April this year.

“We have opened 10 investigation papers under Section 420 of the Penal Code for cheating. The remaining 91 reports have been consolidated under the existing cases and are being investigated under the same section,” Hussein said in a statement.

Investigations revealed that victims were enticed after receiving presentations and representations about the supposed investment opportunity from the scheme’s promoters.

“This investment was premised on the purchase of vending machines with the promise of high returns. After hearing the presentation and investment proposal, victims were persuaded to join and made payments into bank accounts provided by the suspects,” he explained.

Hussein noted that while some participants initially received modest returns, the payments eventually ceased, and many began to suspect that the investment may not have existed at all.

“Many victims were unsure whether the vending machine operation was real. While early returns were paid out, the scheme later failed to deliver any profits,” he said.

Completed investigation papers have since been referred to the Deputy Public Prosecutor’s Office, which decided not to pursue criminal charges under fraud provisions. Victims have been advised instead to file civil suits for breach of contract in order to recover their funds.

“In light of the decision not to proceed with criminal prosecution, complainants are encouraged to pursue civil action for breach of contract based on the agreements signed with the investment companies,” Hussein stated.

He also urged the public to remain vigilant and wary of investment opportunities promising unrealistic returns, particularly those offered via financial apps or schemes not authorised by Bank Negara Malaysia or the Securities Commission Malaysia.

“Members of the public are reminded to always verify the legitimacy of any investment opportunity and to steer clear of ventures that guarantee unusually high profits,” he added. - June 5, 2025

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