Have you ever read a news story about a scam victim and thought to yourself that it would never occur to you? After all, you’re likely more knowledgeable, aware and internet-savvy than the victims stated in the media coverage. With more Malaysians using online banking, investment, and transactions with government agencies, it has become easier for scammers to quickly access victims’ accounts, trap the victims to send money overseas from Malaysia and disappear with the money before being discovered. Unfortunately, scammers are so skilled at deception that it’s difficult to spot one when you’re the intended victim. Here are some of the most common Malaysian scams to be aware of.
EPF Money Scam
You should be cautious if you see a social media post, SMS, or WhatsApp text claiming to be from the Employees’ Provident Fund (EPF). The (actual) EPF has warned that syndicates are assisting contributors in withdrawing their EPF savings early in exchange for a fee. These syndicates promoted their services through social media. They would falsify documents in order to withdraw EPF balances. Do not interact with these crime syndicates. They charge excessive fees, and you may face legal consequences if you falsify your application. EPF also discovered a fraudulent SMS message sent to contributors, stating that their EPF accounts would be banned within 24 hours unless they got in touch with the number provided. Official messages from the EPF, on the other hand, will use a five-digit short code as the sender identification (ID) and will never be sent from a personal phone number.
Illegal Loan Scam
There are many fraudsters out to steal your cash under the false pretense of providing a loan. However, in order to obtain the loan, you must make upfront payments (for example, ‘processing’ fees). They simply disappear after collecting as many payments as they can from you. Some of the alerts of a loan scam are as follows the lender is uninterested in your credit history, and the lender requires you to make an initial payment. Due to limited-time offers, the lender requests that you act immediately. Don’t fall for these deceptions. Only obtain funding from banks or financial institutions.
Investment Scheme Scam
If an investment scheme appears to be too good to be true, it most probably is. Genuine investments do not guarantee returns (unless you invest in a fixed deposit or an endowment insurance policy). They will also not guarantee immediate high returns.
Here are a few indicators that the ‘once-in-a-lifetime’ investment opportunity being offered to you is a scam:
· It ensures profits.
· It promises quick and unrealistically high returns (i.e. more than 10% per year).
· It does not have a Securities Commission license and is not a registered market operator.
Love Scam
Be cautious of anyone you meet on the internet. Once online dating scammers have gained their victims’ trust, they may offer them a lucrative business opportunity that requires a large upfront investment. Some scammers may also communicate with their victims for weeks or months before suddenly having an emergency that requires financial assistance (for example, their child has become ill or they have lost their job). Another variation of the love scam involves the scammer claiming to have sent the victim a parcel containing valuable items from overseas. The victim, on the other hand, would receive a call from the scammer (or another accomplice posing as a customs officer) claiming that the parcel had been withheld. Later, the victim needs to make a money transfer to release the parcel.
Danger is everywhere, so does the money scams. Never ever trust people easily and be ‘’generous’’ to strangers! Trust your instincts!