KUALA LUMPUR (Nov 5): The Securities Commission Malaysia (SC) has cautioned the public of a sharp increase in clone firm scams this year, perpetrated by companies that fraudulently impersonate legitimate entities, including misusing names and logos of public listed companies (PLCs). 

In a statement, the regulator said these clone firms offer non-existent investment opportunities, including in the shares of PLCs, promising unrealistically high returns within a short span of time. 

The SC also issued an alert in May against fraudulent clone firms posing as licensed capital market intermediaries. 

“The latest cloning scams include PLCs in the medical, glove and property sectors that have garnered investor interest due to the Covid-19 pandemic. The targeted entities have lodged police reports and/or made complaints with the SC about the cloning of their corporate identities by unknown persons or organisations,” said the SC. 

The fraudsters also use corporate credentials, websites and other details of legitimate entities when promoting these schemes via social media channels such as Facebook, WhatsApp and Twitter. 

The regulator said that victims are often instructed to provide personal information, such as their names, NRIC numbers and bank details, after which they would be directed to transfer funds to personal bank accounts of the scammers.

The impersonators would then induce victims to part with more money on the pretext of income tax payments, administrative fees, bank charges, withdrawal fees or exchange rates. 

“The SC would like to remind investors to always exercise caution when evaluating investment opportunities, especially those promising very high returns with little or no risk, and seek the counsel of licensed and legitimate advisers,” the SC said. 

It also reminded investors to verify the status of individuals or companies offering investing opportunities via the SC's website at:  

a) www.sc.com.my/regulation/licensing/licensed-and-registered-persons 

b) www.sc.com.my/development/digital/list-of-registered-recognized-market-operators

“The SC also urges the public to verify bank account details via the 'Semak Mule' online application and website made available by PDRM’s (the Royal Malaysia Police) Commercial Crime Investigation Department to check if a bank account and phone number has been used for fraudulent activities or if its owner has any criminal records. 

“Members of the public who suspect that they have been approached by unauthorised firms or individuals offering schemes promising returns, which seem too good to be true, may lodge a report with our Consumers and Investors Department at 603 6204 8000 or email [email protected],” it said. 

Last month, IOI Corp Bhd said its identity was fraudulently used by certain parties for scamming purposes, with the group affirming that it was not involved in any unsolicited capital market investment with the individuals. 

The group said its name and emblem were fraudulently used by unscrupulous individuals in various forms of cross-border fraud, investment fraud, advanced fee scams and similar scams via email, WhatsApp or hard-copy letters.