A RETIRED information technology consultant has reportedly lost almost RM1.5 million in a sophisticated online cryptocurrency investment scam after being lured by promises of lucrative returns through a social media advertisement.
The case, which is now under police investigation, underscores the growing scale of online financial fraud schemes that continue to target investors through social media platforms and messaging applications.
Penang police chief Datuk Azizee Ismail said the 63-year-old victim lodged a report at the South-West District Police Headquarters in Balik Pulau after discovering that he was unable to access either his purported profits or the capital he had invested.
According to investigators, the victim first encountered an advertisement promoting a cryptocurrency investment opportunity on Facebook in December 2023.
Attracted by the promise of substantial financial returns, he clicked on the advertisement and subsequently established contact with individuals believed to be involved in the scheme through WhatsApp.
Azizee said the victim was offered an investment programme involving the trading of cryptocurrency linked to the United States dollar and was later invited to join a WhatsApp group where detailed explanations and guidance regarding the investment were provided.
“Because he was interested, the victim clicked on the investment advertisement link before communicating with the suspect through the WhatsApp application.
“The suspect offered an investment involving the trading of United States dollar cryptocurrency, after which the victim joined a WhatsApp group that provided explanations regarding the investment,” he said in a statement.
The victim was subsequently instructed to download a dedicated investment application, which allegedly displayed investment activity and purported profits.
Between March and September 2024, the victim carried out nine separate fund transfers to six bank accounts belonging to companies identified by the suspects, amounting to more than RM1.49 million.
“The victim was then instructed to download the investment application. Between March 2024 and September 2024, he carried out nine fund transfer transactions to six company bank accounts provided by the suspect, amounting to more than RM1.49 million,” Azizee said.
The fraud only became apparent when the victim attempted to withdraw the profits and capital allegedly reflected in the application but found that the funds could not be transferred into his personal bank account.
Police believe the displayed returns may have been fabricated to create the impression of successful investments while encouraging continued deposits from the victim.
Azizee urged the public to exercise extreme caution when considering investment opportunities promoted online, particularly those promising unusually high or guaranteed returns.
“Members of the public are reminded that participation in any investment scheme, particularly those offered online, carries significant risks,” he said.
The case is being investigated under Section 420 of the Penal Code for cheating, an offence that carries severe penalties upon conviction.
Authorities continue to advise investors to verify the legitimacy of investment platforms and financial schemes through the relevant regulatory agencies before committing funds, particularly when approached through social media advertisements, messaging applications or unsolicited online promotions. - June 1, 2026
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