KUALA LUMPUR: A 69-year-old businessman recently fell victim to a cryptocurrency investment scam, resulting in a staggering loss of RM10.2 million.
Federal Commercial Crime Investigation Department director Datuk Seri Ramli Mohamed Yoosuf said the case was reported on Aug 17 revealing that the victim began investing in the cryptocurrency scheme in April after meeting an individual online.
"The scammer, posing as an expert, guided the victim to download the Coinbase Wallet app to access a website called us-bce.net for investment purposes.
"Over several months, from April to June, the victim made multiple transfers to the investment account.
"When the victim attempted to withdraw funds from the platform, he was instructed to make an additional payment of RM300,000.
"Despite making this payment, the victim discovered that his investment account had been emptied," he told reporters.
Investigations are being conducted under the Penal Code for cheating.
Ramli said it was revealed that the fraudulent investment platform used by the victim was based overseas and the United States authorities had indicted the operators of the platform on Jan 31, for money laundering.
Following the case, he urged the public to conduct thorough research before engaging in cryptocurrency investments.
"If the businessman had done some research on the company behind this so-called cryptocurrency, he would have discovered that it was already under investigation in the United States."
Ramli said the incident highlights the growing risks associated with the unregulated world of digital currencies, where scammers continue to exploit the lack of investor knowledge.
As a precaution, he advised potential cryptocurrency investors to take several steps.
"First, conduct due diligence on the investment scheme. Know that operators of investment schemes must be registered with regulatory authorities to offer financial services.
"In Malaysia, for example, operators must be registered with the Securities Commission Malaysia, the Companies Commission of Malaysia, and Bank Negara Malaysia."
Ramli said investors should also verify the legitimacy of investment schemes by checking the official websites of relevant agencies.
"Lastly, legitimate investment scheme operators typically have a physical office. Whenever possible, conduct transactions in person with the operator.
"While face-to-face interactions don't eliminate the risk of fraud, they provide an additional layer of security," he said.