Rise of Cryptocurrency Investment Scams in Malaysia

Malaysia is witnessing a surge in cryptocurrency investment scams that predominantly target professionals and senior citizens.

Warning from Authorities

Bukit Aman Commercial Crime Investigation Department Director Datuk Seri Ramli Mohamed Yoosuf emphasized, in a report on March 17, that older investors, particularly those over 60, need to be vigilant and avoid hasty investments in cryptocurrency.

A Cautionary Tale

Ramli cited a recent incident where a 74-year-old victim lost tens of millions of ringgit due to a scam. Many victims mistakenly believe that investing in several cryptocurrency coins, each costing hundreds of thousands of ringgit, will yield significant profits. However, Ramli remarked, “no investment is made, it’s purely a scam.”

Other Scams and Fraudulent Calls

In addition to cryptocurrency fraud, phone scams are a significant threat. Crypto scammers frequently impersonate trusted authorities, including financial regulators, banks, or law enforcement, to deceive victims into transferring money. Ramli cautioned the public to be vigilant against fraudulent calls pretending to be from authorities. He noted that legitimate agencies like the police, tax office, and central bank do not conduct operations through convoluted phone calls connecting multiple departments.

Advanced Techniques Used by Scammers

The rise in scams has been fueled by rapid technological advancement, which has made fraudulent schemes more sophisticated. Scammers are increasingly utilizing AI-based tools and deepfake technology, making it easier to impersonate credible authorities or established projects. Experts warn that this trend is expected to persist.

Authorities Taking Action

Malaysian authorities are responding by implementing AI and blockchain technology to improve the detection and tracking of financial crimes. Ramli encouraged citizens, saying, “As law-abiding citizens, do not be afraid and don’t fall for these scams; you could end up losing millions.” He noted that many scams are operated from high-end condominiums in urban centers like Selangor, Kuala Lumpur, and Penang.

Despite the challenges, authorities are making progress, with the JSJK executing 23,000 arrests related to scam syndicates last year—a significant accomplishment, according to Ramli.

Other Concerns

Aside from investment fraud, Malaysia is also grappling with an increase in illegal Bitcoin mining operations. Recent reports indicate that authorities have uncovered cases where miners illegally tap into electricity, leading to hundreds of millions in losses to the country’s power grid.

Read more: Illegal Bitcoin mining operation explodes in Malaysia