MALAYSIA: A 42-year-old company manager has fallen victim to a cryptocurrency investment scam known as UVKXE, losing RM2.56 million (S$776,000) after being enticed by promises of lucrative returns ranging from 10% to 50%.
Bukit Aman Commercial Crime Investigation Department (CCID) director Ramli Yoosuf said the victim was drawn into the scheme after coming across an advertisement on Facebook in July last year. Believing the investment to be legitimate, the victim made 26 transactions to 14 different bank accounts.
Fake profits used to deceive investors
According to director Ramli, the scammers employed advanced technology to deceive the victim into believing his investment was growing. “Despite seeing profits in his investment account, the victim was asked to make further payments whenever he tried to withdraw money, prompting him to file a police report on Feb 7,” he said, as Free Malaysia Today (FMT) quoted.
This method, in which victims are shown falsified profits on online platforms, is a common tactic fraudsters use to build trust and encourage further investment. By making it appear that the funds were increasing, scammers convinced the victim to continue making payments.
Losses exceeded RM33 million
The UVKXE scam has affected this individual and ensnared dozens of other victims nationwide. According to Director Ramli, police have received 44 reports on the scheme, with total losses exceeding RM33 million. The sheer scale of the scam highlights how widespread and damaging such fraudulent schemes can be, leaving victims financially devastated.
He warned that cryptocurrency scams have become increasingly prevalent and sophisticated, with criminals leveraging advanced technology to create fake investment platforms that appear legitimate. “The CCID would like to remind the public that almost all reported cases involving cryptocurrency are scams,” he said, as published in FMT.
These scams often use high-pressure tactics, enticing victims with promises of extraordinary returns while making it difficult to withdraw funds. Many victims, believing they are making substantial profits, continue to invest more money, only to realise too late that they have been deceived. Authorities have urged potential investors to be highly cautious as scammers continually evolve their methods to appear more convincing.
Red flags to watch out for
Cryptocurrency investment scams like UVKXE often share common warning signs that potential investors should know. Recognising these red flags can help prevent financial losses and avoid falling victim to fraudulent schemes.
One major red flag is promises of excessively high returns with little to no risk. Scammers often claim their investments can generate profits of 10% to 50%, like in the case with UVKXE, or even more within a short period. However, legitimate investments always carry some risk, and guarantees of high returns are usually a sign of fraud.
Another warning sign is difficulty withdrawing funds. Many scams allow victims to see fake profits in their online accounts, but when they attempt to withdraw their money, they are asked to make additional payments, such as processing fees or taxes. This tactic is designed to keep victims paying while preventing them from retrieving their funds.
Unregulated and unverified platforms are also a common feature of scams. Fraudsters often operate through websites or mobile applications that appear professional but lack registration with authorities such as Bank Negara Malaysia or the Securities Commission. Before investing, individuals should verify the legitimacy of any investment platform through official sources.
Lastly, lack of transparency is a major warning sign. Scammers often provide vague or confusing explanations about how their investments work, avoiding precise details about their business operations, management, or regulatory status. If an investment opportunity lacks verifiable information, it is best to avoid it.
Authorities urge the public to be cautious
Authorities are urging those who have participated in the UVKXE scheme to cease making payments immediately and to file a police report. Ramli also stressed the importance of conducting thorough background checks before engaging in any investment opportunity.
“Get more information from official sources such as the CCID’s Semakmule portal, Bank Negara Malaysia and the Securities Commission before engaging in any investment scheme,” he advised, as reported by FMT.
With cryptocurrency scams on the rise, the public is reminded to remain vigilant and sceptical of investment opportunities that offer excessively high returns.
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