Stock Trading Guru Scams Contractor Out of RM1.2 Million with ‘Guaranteed Profits’

A Malaysian contractor in his sixties has lost RM1.2 million after falling victim to an online investment scheme that was initially promoted as a free stock trading education programme.

According to Bukit Aman Commercial Crime Investigation Department (CCID) director Datuk Seri Ramli Mohamed Yoosuf, the victim first came across an advertisement on social media on 2 October last year. The advertisement promoted a programme offering free lessons on stock investment, a common tactic used to attract individuals with limited trading experience.

After expressing interest, the victim was added to a WhatsApp group that appeared to provide structured guidance on stock market investing. Participants in the group were required to complete several introductory courses, which were presented as part of an educational pathway designed to help members develop trading skills.

Following the completion of these lessons, an individual within the group who presented himself as an experienced investment mentor introduced a new stock investment opportunity. The scheme was described as low-risk and highly profitable. Members were reportedly told that they would be guaranteed returns and that any potential losses would be compensated.

Encouraged by the promise of secure profits, the victim agreed to participate in the programme. On 27 November, he transferred investment funds into six separate bank accounts belonging to different companies, in accordance with the instructions provided by the group administrators.

By January this year, the victim observed that his investment on the trading platform had allegedly doubled in value. Believing the returns to be genuine, he attempted to withdraw RM600,000 from the account.

However, he was informed that a commission fee equivalent to 10 per cent of the withdrawal amount would need to be paid before the transaction could proceed. The victim complied with the request and made the payment.

Subsequently, he was told that his investment funds had been frozen by Bank Negara Malaysia due to regulatory requirements. To release the funds, he was instructed to pay an additional RM168,000 in tax.

At this stage, the victim began to suspect that something was wrong. The repeated requests for payment and the inability to access his funds prompted him to reassess the situation. He later concluded that he had been deceived and proceeded to lodge a police report.

Authorities have since confirmed that the victim suffered total losses amounting to RM1.2 million.

A Familiar Pattern in Online Investment Fraud

The case reflects a broader trend in online investment fraud, where scammers use the appearance of structured learning and professional mentorship to build trust among victims before introducing fraudulent investment schemes.

Free educational programmes are often used as an entry point. Once participants feel confident in the legitimacy of the platform, they may be encouraged to invest in exclusive opportunities that promise high or guaranteed returns.

In many instances, victims are shown fabricated profits through manipulated trading platforms. When withdrawal requests are made, additional fees, commissions or taxes are imposed as conditions for releasing the funds.

These demands typically escalate over time, with fraudsters citing regulatory or administrative requirements as justification. By the time victims realise the deception, substantial financial losses may have already occurred.

Growing Threat to Retail Investors

Law enforcement agencies have warned that investment scams conducted through messaging applications are becoming increasingly difficult to detect. The use of group chats, simulated course materials and staged testimonials can create a false sense of legitimacy.

Such schemes often target individuals who are seeking alternative sources of income or who are interested in learning about financial markets. The promise of guaranteed returns remains a key factor in persuading victims to transfer funds.

Regulators continue to emphasise that legitimate investment opportunities do not guarantee profits and do not require payments to unlock withdrawals. Investors are advised to verify the credentials of any investment platform or adviser before committing funds.

As online trading gains popularity among retail investors, authorities stress the importance of due diligence and awareness. Cases such as this underline the risks posed by unverified investment schemes, particularly those promoted through informal digital channels.