WITH many opportunities to make money via investments, the public has a lot of choices to choose from.

But is it true there are investment scams enticing investors with pre-initial public offering (IPO) shares of companies seeking listing on Bursa Malaysia?




Unfortunately, some are irresponsible parties out there trying to scam the innocent.

The Securities Commission Malaysia (SC) cautioned the public on such scams.

These scams – mostly involving private placement offerings – are usually timed with upcoming IPO listings published on Bursa Malaysia’s website.

“Perpetrators of these scams, posing as ‘agents’, usually create a public group on WhatsApp to promote these pre-IPO investments.

“Following this, potential victims will be added into said group unsolicited,” SC said in a statement.

These schemes may be accompanied by fake testimonials from other investors to appear credible.

“Payments for the ‘subscription’ will be required to be made to bank accounts of entities not related to the IPO and suspected of being mule bank accounts.

“On the IPO listing day, these ‘agents’ will proclaim that the IPO shares have been listed and had made profits, and that additional payments are needed for their shares to be allotted.

“This, of course, is fraudulent, so as to convince the victims to give more money,” it said.

To date, the SC noted it received various complaints and inquiries from investors who had reported substantial losses, exceeding RM800,000.

“The SC views this matter seriously and will continue to monitor and take appropriate action against such investment scam activities,” it said.

The commission also advised the public to be vigilant in evaluating investment offers including ensuring that they do not transfer or deposit money into suspicious accounts.

The public is also encouraged to verify investment offers through the SC Investment Checker at www.sc.com.my/investment-checker.