KUALA LUMPUR (Oct 8): Securities Commission Malaysia (SC) chairman Datuk Syed Zaid Albar said on Friday (Oct 8) the regulator had seen a significant jump in the number of illegal investment scheme- or scam-related complaints and enquiries at over 2,000 as of September 2021, more than double the total figure reported in 2020.
Scams continue to be a source of concern for the SC, Syed Zaid said in his speech at the virtual InvestSmart® Fest 2021.
"As of September 2021, the SC had received over 2,000 queries and complaints about illegal investment schemes or scams . This was more than double the total number reported in 2020.
"These scams typically promise high returns within a short period of time, with little or no risk. They are frequently promoted through social media channels, with payments required into mule bank accounts operated by the scammers,” he said.
As of Sept 30, 2021, the SC had made 202 new entries in the SC’s investor alert list, compared with 134 entries in 2020, Syed Zaid added.
So far in 2021, the SC with the help of the Malaysian Communications and Multimedia Commission (MCMC) and Facebook Malaysia had managed to block 97 websites and seven Facebook accounts, according to him.
"Aside from investment scams, we also saw an increase in the number of activities carried out without the necessary licence or registration with the SC.
"This year, the SC took enforcement action against two foreign digital asset exchanges (DAXs), reprimanding and blocking their websites for operating illegally in Malaysia.
"Investors should be aware that those who trade on unregistered DAXs are not protected under Malaysian securities laws and are exposed to fraud and money laundering risks,” he said.
As of Sept 30, 2021, the SC had included 38 DAX operators on its investor alert list, which comprises entities and related individuals carrying on the business of investment advice without a licence, according to Syed Zaid.
He said the SC had directed 29 of these DAX operators to desist from providing unlicensed investment advice.
"These activities are typically carried out by self-proclaimed 'investment gurus' who offer their services through subscription-based private chat groups on Telegram, WhatsApp and Facebook,” he added.