Malaysian authorities are alarmed by a rise in cryptocurrency investment scams, particularly targeting professionals and the elderly.
Increase in Cryptocurrency Fraud
The Bukit Aman Commercial Crime Investigation Department has warned the public about increasing risks for investors over 60. Director Datuk Seri Ramli Mohamed Yoosuf highlighted the issue when interviewing a 74-year-old victim whose family lost millions of ringgit to fraudsters. He noted that many view buying cryptocurrency coins as a way to quick riches, often leading to complete deception.
Scam Methods: Vishing and Impersonation
Scammers frequently resort to vishing calls and impersonation. They often pose as financial regulators, banks, or law enforcement agencies. Ramli emphasized that legitimate agencies do not conduct multi-step phone calls transferring victims between fake departments. Fraudsters might claim unpaid taxes or threaten arrest, coercing victims into transferring money to 'safe accounts'.
Law Enforcement Actions
Malaysian law enforcement is actively tackling syndicates behind these scams. Last year, over 23,000 arrests were made for financial fraud. Additionally, authorities have been cracking down on illegal bitcoin mining operations, where criminals illegally connect to power grids, causing significant losses. Authorities are deploying AI and blockchain technology to counter the threat, enhancing fraud detection and tracking illicit transactions.
The Malaysian authorities continue their fight against cryptocurrency scams, urging residents to stay vigilant. Seniors and professionals remain at risk, and it's crucial to remember that genuine investments often don't offer high returns in short periods.
