KUALA LUMPUR (March 25): The Securities Commission Malaysia (SC) observed an increase in the number of complaints and enquiries in 2023, mainly about scams and unlicensed activities, according to the regulator's annual report released on Monday.

The capital markets regulator received 5,318 complaints and enquiries in 2023, 20% more than the 4,436 it recorded in 2022, indicating greater awareness and scepticism among the public, it said.

Those involving scams and unlicensed activities made up 3,262 or 61.3% of the 2023 tally, up 32.5% from 2,461 in 2022, and over four times the 774 recorded in 2019.

As the National Higher Education Fund Corp (PTPTN) enters its 27th year of supporting the higher education needs of Malaysian students, the stakes have never been higher. Its mandate remains: to ensure no Malaysian student who wishes to pursue tertiary education is left behind because of financial constraints.

“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,” it said.

“In addition to the various types of scams, including investment scams, and unlicensed activities, there were increasing concerns observed involving the conduct of unlisted public companies (UPCs) and entities offering cash trust products,” it added.

The SC also observed the evolution of the common job and love scams, which now have elements of investment scams as well.

Investment scams involve the promotion of non-existent investment products. Scammers typically 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 do not exist.

In most of these scams, the perpetrators used fake websites, social media pages and mule bank accounts to promote and carry out their illegal activities.

“In many of these cases too, scammers falsely lend credence and legitimacy to their illegal activity by misusing the name of agencies such as the SC, BNM (Bank Negara Malaysia), the Companies Commission of Malaysia (SSM), licensed intermediaries and images of local celebrities and religious leaders,” the SC said.

“Many of these schemes also falsely claimed to be shariah-compliant to appeal to the sentiment of the Muslim investors,” it added.

The SC has also regularly received complaints and enquiries on operators of unlicensed activities, involving both local and foreign entities, who may not necessarily be carrying out a scam.

“These foreign entities may be properly licensed or regulated by foreign regulators. However, they would still be breaching Malaysian laws if they carry out their activities in Malaysia, solicit Malaysian clients or have a local presence in Malaysia without the requisite licence or registration from the SC,” the SC said. 

https://www.theedgemarkets.com/node/705745