As we rely more on online services for banking and shopping, the risk of falling victim to a scam has never been higher. There has been an alarming surge in scam reports, with losses totaling RM203.33 million in the first quarter of this year alone! Scammers have honed their tactics to be so sophisticated that even the tech-savvy can get caught off guard. In this article, we've compiled the most common scams in Malaysia so you can spot them and learn how to protect yourself.
Popular Scams in Malaysia
1. EPF Scam
The EPF scam often involves scammers impersonating EPF officials and notifying victims that withdrawals have been made from their EPF Account 3. The scammers anticipate that the victims will panic and call to stop the withdrawal. Once they have the victim on the line, they feed them more lies and ask for cash to process their requests.
Another variant of the EPF scam involves sending false messages to victims, claiming that their EPF accounts will be blocked within 24 hours unless they contact a provided phone number. However, official messages from EPF will display a five-digit shortcode as sender identification (ID) and will never be sent from a personal phone number.
Additionally, EPF has also reported syndicates that advertise their services on social media, offering help to contributors to withdraw their EPF savings early in return for a fee. To convince their victims, they submit falsified documents to facilitate withdrawals.
If you encounter these syndicates, do not engage with them. They charge exorbitant fees, and you could also get into legal trouble for falsifying your application.
2. Loan Scam
Loan scams are another popular scam in Malaysia. Scammers pose as legitimate lenders, such as bank employees or agents, and contact potential victims via direct message, SMS, phone call, or even an ad on social media. To build trust and validate their “legitimacy,” scammers may go as far as sharing their “business card” or sending photographs of bank staff in their premises.
They then request personal documents from the victim. Upon receiving these documents, scammers inform the victim that their loan application has been submitted for processing. This is also an opportunity to deceive victims into sharing sensitive banking details and confidential information. Next, scammers request upfront payments for various fees, such as advance deposits, insurance, and taxes, to be made into an individual or company account. The payments continue until the victim realises that they’ve been scammed. Signs of personal loan scams in Malaysia include offers of guaranteed approval without a credit check, requests for upfront payments, a lack of verifiable contact information, pressure to act immediately, and offers that seem too good to be true. The biggest giveaway here would be that legitimate financial institutions and banks would NEVER authorise 3rd party agents for loans. Before making any payment for upfront fees, check with the bank’s official website or call the contact centre for more information.
3. Macau Scam
Macau scams are another prevalent scam in Malaysia. In Kuala Terengganu, a 47-year-old businesswoman lost over RM200,000 after she fell for a Macau scam. The term “Macau scam” was coined as it is believed to have originated in Macau or that the first victims came from there. A Macau scam is a deceptive scheme where imposters impersonate law enforcement officials, government agencies, or banks to trick you into revealing personal information or transferring money.
The scam starts with you receiving a phone call with a spoofed number from someone claiming to be from a trusted authority figure like officers from the Royal Malaysian Police (PDRM), Bank Negara Malaysia (BNM), the Malaysian Anti-Corruption Commission (SPRM), or other agencies. The scammer will create a sense of urgency or make you panic by making up stories about accusing you of a crime, such as money laundering or involvement in a criminal investigation. They'll pressure you to “clear your name” by transferring money to a secure account, which is actually a fraudulent account controlled by the scammers.
If you encounter one of these phone calls, it’s best to hang up immediately. Authorised personnel won’t contact you about sensitive matters through unsolicited phone calls.
4. Love Scam a.k.a Catfishing
Be careful of the strangers you meet online. An employee of a higher education institution was left penniless after losing RM500,000 in a love scam. The victim had made contact with a “foreign” man through a dating website.
These scammers create fake profiles on legitimate dating websites to trick you into entering a romantic relationship.They start by building a strong connection with you before asking for financial help, claiming they need it for illness, injury, travel, or a family crisis. These scammers can invest months into building rapport with you before making their move. Red flags to look out for would be fast declarations of love, reluctance to video chat and of course, financial requests. Some ways to protect yourself would be to always do a reverse image search on profile pictures, and be cautious of online profiles that seem too perfect. Be careful of the strangers you meet online. An employee of a higher education institution was left penniless after losing RM500,000 in a love scam. The victim had made contact with a “foreign” man through a dating website.
These scammers create fake profiles on legitimate dating websites to trick you into entering a romantic relationship.They start by building a strong connection with you before asking for financial help, claiming they need it for illness, injury, travel, or a family crisis. These scammers can invest months into building rapport with you before making their move.
Red flags to look out for would be fast declarations of love, reluctance to video chat and of course, financial requests. Some ways to protect yourself would be to always do a reverse image search on profile pictures, and be cautious of online profiles that seem too perfect.
5. Job Scam or Recruitment Scam
Job scams involve fake online job ads posted on social media, untrusted job portals, and sometimes even LinkedIn. Victims may also be directly approached by scammers via direct message or Whatsapp.
These scams typically involve simple jobs with high returns or work-from-home arrangements to attract unsuspecting job seekers. The scammers promise a job opportunity following an initial upfront payment to secure an interview, training course, software, security clearance, taxes or fees.
A good rule of thumb to remember when it comes to job scams is, if it seems too good to be true, then it’s probably a scam. Another way to tell if the job is a scam is if you’ve never applied for the job or the job description seems vague or too short. You can also check the company’s legitimacy by looking for it’s official website.
6. Investment Scam
An investment scam promises potential investors a lucrative, low-risk, and short-term investment opportunity. Scammers entice victims by offering not-to-be-missed high returns or guaranteed investments in shares, real estate, options, or foreign currency trading.
Genuine investment schemes will not promise guaranteed returns, especially not immediately. Investment scams are often marketed through social media platforms like Facebook or direct messages like WhatsApp. They are typically not licensed under the Securities Commission or registered as market operators.
To spot and prevent investment scams, be wary of offers that seem too good to be true. Always verify the legitimacy of the investment by checking for proper licensing and registration. Or better yet, consult with a trusted financial advisor and do thorough research before making any decisions.
7. Messaging Scam
SMS-based scams have been increasing in Malaysia, and unfortunately, many people have fallen prey to them. The latest tactic used by scammers involves impersonating telecommunication companies. Victims are lured through SMS messages from their supposed telco providers with a link attached to redeem their “loyalty points.” The messages claim that the victim has been awarded reward points and must claim them before they expire.
Victims who click on the link are forwarded to a site that asks for their online banking information and the OTP number sent from the bank. This information is then used by scammers to access the victim's bank account and steal their money.
If you come across such messages, verify the legitimacy of the message by contacting your service provider directly through official channels. Never click on suspicious links or provide sensitive information through SMS.
What to Do If You Suspect a Scam
While scammers are convincing and persistent, it is important for us to remain vigilant and cautious. If you suspect a scam, remember to do these three things:
Stop: Don’t give out any personal information and certainly don’t make any transactions—even if it sounds like you’re speaking to someone in authority (police, bank, etc.). Scammers rely on you not spotting these warning signs.
Think: If your gut makes you suspect something is “off,” don’t ignore it. Ask yourself, “Could this be fake?” Don’t click links in messages, emails, or even on social media posts. Verify the legitimacy of the information from official websites or through secure apps. If you’re on the phone, say no, hang up, and block the number.
Protect: Act immediately. If you’ve noticed unusual activity or suspect a scammer has your information, notify your bank and seek help. Acting quickly will allow them to implement the necessary protocols to prevent further harm.
What to Do If You've Already Fallen for a Scam
If you’ve already fallen for a scam, take these steps immediately to minimize the damage:
Keep All Records: Keep all your records of financial transactions relevant to the interaction with the scammer. Take screenshots of your interactions with the scammer.
Notify Your Bank: Contact your bank immediately to inform them of the scam and take steps to secure your accounts.
Notify NSRC: Provide the National Scam Response Centre with the details of the scam. They can help in taking further action.
Make a Police Report: Report the scam to the police to ensure it is officially documented.
Report to Bank Negara (if necessary): If the scam involves financial institutions, make a second report to Bank Negara.
Contact PDRM's Commercial Crime Investigation Department: Lodge a report with their Scam Response Centre at 03-26101559 and 03-26101599.
Report to MCMC: Alternatively, you can report the scam via MCMC's website, email them at aduanskmm@mcmc.gov.my, or WhatsApp them at 016-220 6262.
Subscribe to our financial newsletter for the latest news, insights, and advice on personal finance, investing, and more. With every email, you’ll gather the confidence and knowledge to make informed decisions to achieve your financial goals.