JOHOR BARU: A 53-year-old man lost RM444,000 after falling victim to a fake online stock investment scheme, which he joined in July, promising lucrative returns.
The private firm account manager received a call from an unidentified man claiming to be an investment consultant.
The caller persuaded him to invest in stock markets through a stock application.
He was then added to a WhatsApp group called "SPDR VIP35," allegedly linked to the investment.
Between Oct 31 and Nov 22, he transferred RM444,000 in 16 transactions to seven bank accounts.
Johor Baru (South) police chief Assistant Commissioner Raub Selamat said the victim was able to monitor his profits on the downloaded stock application, which reflected a soaring RM3.16 million in profits.
"However, his attempt to withdraw the profits hit a snag.
"He was asked to pay a 10 per cent commission amounting to RM289,000 to unlock his funds," Raub said in a statement today.
Realising the investments were fraud, he lodged a police report yesterday after the scammers threatened to shut down his investment account.
The WhatsApp group participants also warned him against taking further actions, Raub said.
The case is being investigated under Section 420 of the Penal Code for cheating, which carries a maximum penalty of ten years' jail, whipping and a fine.
Raub urged the public to remain vigilant, especially with online investment offers promising high returns.
He also cautioned them against lending or selling their bank accounts to others.
He warned that it could be misused for criminal activities and implicate the account holders.
The act is punishable under Section 424B of the Penal Code for allowing someone else access to a financial institution account or payment instrument without a legitimate purpose or lawful authority.