SC alerts public on rise in investment scams promoted on Telegram

In a statement today, the SC said since January 2022, it has received a total of 47 complaints and enquiries on illegal investment schemes promoted through Telegram.

These fraudulent schemes offer non-existent investment opportunities, promising very attractive and risk-free returns within a short span of time, it said.

"They commonly offer unrealistic returns of as high as 1,000 per cent within 24 hours or even within a few hours.

"The perpetrators use various names to carry out the investment scams and they may also impersonate or clone licensed capital market intermediaries by using the names, logos, credentials, websites, and other details of the legitimate entities to promote the illegal schemes," it said.

The SC said perpetrators of these scams will create a public group on Telegram to promote these investment packages that are usually accompanied by fake testimonies and sometimes advertised as being Shariah-compliant.

Interested investors will be asked to directly message the representatives to begin investing in the various investment packages offered and are often instructed to deposit monies into personal bank accounts of individuals who claim to represent a legitimate entity, and/or into an unrelated corporate account.

To lend credence and to lure unsuspecting victims, perpetrators usually claim that their entity and/or the investment schemes are approved by financial authorities, it added.

"As such, the SC would like to remind investors to always exercise caution when evaluating investment opportunities, especially those promising unrealistically high returns with little or no risk.

"Investors should also never deposit money into someone's personal bank account if instructed," it said, adding the public should refer to the SC's Investor Alert List which contains details of unauthorised websites, investment products, companies and individuals, before investing.

Members of the public who suspect that they have been approached by unauthorised firms or individuals offering schemes that promise unrealistic returns may lodge a report with the SC's Consumers and Investors Department at 03-6204 8999 or email: [email protected].