Page 47 - SC SCAR 2023 ENGLISH Flipbook

PART 2 REGULATORY PERFORMANCE AND OUTCOMES
SPECIAL FEATURE 1
TOWARDS GREATER PROTECTION OF INVESTORS
Overview
Over the years, we have seen many occasions where individuals or entities were duped, misled, tricked, enticed and even pressured to part away with their monies and retirement savings by dishonest and fraudulent activities that promise unreal returns and benefits, that are too good to resist. Such activities are also reflected in the increasing number of complaints and enquiries received by the SC, namely on scams and unlicensed activities. In 2023, the SC received 3,262 complaints and enquiries on scams and unlicensed activities. This represents a significant increase of 321% for the past five years from 2019 to 2023.
Complaints and Enquiries on Unlicensed Activities and Scams
3,475 3,262 2,461
321%
1,799
774
2019 2020 2021 2022 2023
In addition to the various types of scams, including investment scams, and unlicensed activities, there were also increasing concerns observed involving the conduct of unlisted public companies (UPCs) and entities offering Cash Trust products.
Investment Scams
Investment scams involve the promotion of non-existent investment products. This occurs where scammers make false claims that the investment will be made into capital market products such as shares or cryptocurrencies, when in fact such investment opportunities or products does not exist.
The fraudulent investment would in most cases offer unusually high returns. In this regard, it is not uncommon, for example, for such schemes to promise 1,000% returns within 24 hours or even within a few hours. Such schemes also offer investment packages which can start from as low as RM300 to about RM1,000 only. In addition to this being seemingly legitimate, it would also enable the scammers to have a wider pool of potential victims, including those under the low-income bracket as such small sums would be more readily available. Further, given that the investment would generally be seen to be less risky with their relatively small investment amount, the target victims may unfortunately also tend to be less risk averse.
SECURITIES COMMISSION MALAYSIA ANNUAL REPORT 2023 45