Kuala Lumpur, October 27, 2024 — There is growing concern regarding fraudulent schemes that employ deceptive tactics to exploit wealthy individuals and retirees. Scammers are now tricking victims by posing as credible entrepreneurs or potential business operators, such as those in the restaurant or gold trading sectors. They promise high investment returns, presenting transactions as legitimate and secure investments.
Modus Operandi:
1. Trust-Based Introduction: Scammers often utilize intermediaries who have established trust with victims. These intermediaries convince prospective lenders that the loan transaction is a “friendship loan,” accompanied by a formal agreement, creating a false impression that the loan is secure.
2. Misleading Legal Framework: To reinforce this trust, scammers provide legitimate-looking agreement documents prepared in the presence of a lawyer. These agreements combine the principal amount and promised interest without disclosing the true nature of the transaction, thereby creating an illusion of security.
3. False Allegations Against Lenders: After the loan is disbursed, the scammers change tactics. One or two months later, they file police reports alleging that the lender is involved in illegal money lending activities. This accusation aims to intimidate the lender and prevent them from recovering their funds.
4. Legal and Financial Barriers: Victims often hesitate to pursue legal action due to concerns over high legal costs and the complexities of litigation. Scammers take advantage of this reluctance to evade legal consequences while leaving lenders to bear financial losses.
Call to Action:
Experts urge the Honourable Tan Sri Ahmad Terrirudin Mohd Salleh, Attorney General, and Azalina Othman Said, Minister of Law, to tighten regulations and propose new laws to address these increasingly sophisticated fraudulent tactics. The Commercial Crime Investigation Department (CCID), under the direction of Comm Datuk Seri Ramli Mohamed Yoosuf, and the Attorney General’s Department are advised to prioritize these cases and present new legislation in Parliament to close existing legal loopholes.
Authorities emphasize the importance of raising public awareness and enforcing stricter laws to protect citizens from falling victim to these elaborate frauds. With coordinated efforts, it is hoped that harsher penalties and legal reforms can deter such fraudulent activities in the future.