A PROJECT supervisor in Johor has allegedly lost RM200,400 after falling victim to a fraudulent online stock investment scheme that promised returns of up to 80 per cent and displayed fictitious profits exceeding RM2.6 million.
The 45-year-old man lodged a police report on Sunday after realising he had been deceived by individuals posing as investment advisers linked to a supposed United States-based private investment firm.
Pontian district police chief Hadzrat Hussien Mion Hussain said the victim first encountered the scheme on 6 February through an Instagram link while at his home in Taman Megah, Pontian.
“The victim communicated with several individuals who introduced a stock investment opportunity using a trading application and managed by a US-based private investment firm.
“The victim was also added to a WhatsApp investment group and convinced that the scheme could generate high returns of up to 80%,” he said on Monday.
Police said the victim began transferring money into the scheme between 9 March and 19 May, believing he was participating in legitimate stock investments and share purchases.
“The total amount transferred by the victim reached RM200,400,” Hadzrat Hussien said.
The victim was later informed that he had supposedly secured initial public offering (IPO) shares valued at approximately RM380,000.
However, when he attempted to withdraw from the investment because he could no longer afford to continue making payments, his request was allegedly denied.
“The victim was instead persuaded to continue making further payments,” the district police chief said.
The deception escalated when the victim later attempted to withdraw profits from the trading account, which purportedly showed a balance of RM2.66 million.
According to police, the suspects demanded a commission payment equivalent to 20 per cent of the alleged IPO profits before any withdrawal could be processed.
“The victim’s request to deduct the commission directly from the balance in his trading account was also rejected,” Hadzrat Hussien said.
The victim eventually became suspicious after repeated attempts to withdraw funds failed and the suspects continued providing what he believed were unreasonable excuses.
Police are investigating the case under Section 420 of the Penal Code for cheating, an offence punishable upon conviction with imprisonment of between one and 10 years, whipping and a fine. - May 25, 2026
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