KUALA LUMPUR: Scam syndicates are now setting up mule companies and bank accounts to move illegal funds and avoid detection.
Police discovered this following the arrest of six people linked to an investment scam syndicate involving losses of over RM21 million.
"We received 48 reports nationwide in connection with this 'Pimco' scam syndicate," said Federal Commercial Crime Investigation Department director Datuk Seri Ramli Mohamed Yoosuf.
"Based on investigations, it is believed that this syndicate has been actively advertising investments through Facebook since March," he told a press conference.
He said they offered share transaction services to Malaysian, Taiwanese, and Chinese companies.
"Interested investors will be contacted and included in the investment WhatsApp group before being asked to download the T Rowe application to register as a member.
"Once registration is complete, investors will be contacted by the syndicate and instructed to make payments to several company accounts to start investing.
"Investors are promised returns of up to 400 per cent on their investments."
Once an investment was made, the victims would be informed that profits had been generated.
To withdraw their profits, the victims would be asked to make additional payments.
He said on July 15, police raided several locations in KL, Selangor, Melaka, Pahang, Johor, and Sarawak.
"In the raids, we arrested three men and three women aged between 31 and 54 who were believed to be involved in the activity.
"All those arrested are suspected to be company owners and company secretaries who are used as mule accounts by the syndicate involved," he said adding that they also seized two mobile phones in the raid.
He said they used Section 44(1) of the Anti-Money Laundering, Anti-Terrorist Financing and Proceeds from Illegal Activities Act to freeze 15 bank accounts containing RM474,395.
"We call on any other individuals who are victims of this syndicate to come forward and lodge a police report.
"Investigations are ongoing under Section 420 of the Penal Code for committing fraud," he said.