KUALA LUMPUR: The Securities Commission Malaysia (SC) has received 3,380 complaints and inquiries on scams and unlicensed activities as of the third quarter of 2024 (3Q 2024), a 28 per cent increase from last year.

In a statement today, executive director and general counsel, Yew Yee Tee said cases have become increasingly sophisticated and include the use of deepfake technology and evolving modus operandi.

"The positive side to this is that we also see greater awareness and scepticism among the public where many of these complainants and enquirers coming forth to the SC have not fallen victim to these scams (as compared to previous years)," she said at the launch of InvestSmart Fest 2024 at the Mid Valley Exhibition Centre, Kuala Lumpur.

Nonetheless, she said scams and unlicensed activities continue to be a growing concern.

"In 2023, the SC received 3,262 public complaints and enquiries on various scams and unlicensed activities, a 321 per cent increase from 2019," she said.

On the growing influence of financial influencers (finfluencers) on social media, Yew said the SC has updated its guidance note on the provision of investment advice.

She said many have turned to social media and other digital platforms for information and advice but these 'finfluencers' are not equipped with investment knowledge and in some cases, their activity may require a licence from the SC and they are not licensed.

She also highlighted a few cases in the US where regulators took action against well-known personalities-turned-influencers who promoted crypto assets.

Yew also cautioned against renting out bank accounts to scammers to illegally receive and move ill-gotten funds.

"Most scams share a common element — the use of mule bank accounts. Mules are now being liable to fines of RM10,000 and jail terms of at least one year if found guilty," Yew said.

They will not be allowed to maintain or open bank accounts, making it difficult for them to seek employment or operate a business, both of which need a bank account, she said.

InvestSmart 2024 is held in partnership with Bursa Malaysia and is expected to attract over 11,000 visitors.

- BERNAMA