Malaysian Police Busts HANWHA Stock Investment Scam, Arrests 31 Foreign Nationals

Malaysian police have dismantled an online stock investment scam syndicate that allegedly targeted victims in South Korea and China, resulting in the arrest of 31 foreign nationals during a raid on a luxury property in Melaka.

The operation, carried out by the Melaka Commercial Crime Investigation Department together with the Melaka Tengah District Criminal Investigation Department, led to the arrest of one South Korean woman and 30 Chinese men believed to be involved in running an international investment fraud operation.

Melaka Police Chief Datuk Zulkiflee Mukhtar announced the arrests during a press conference today, revealing that the raid took place at approximately 4.30pm on June 22 at a single storey detached bungalow in the Klebang area.

According to police, the suspects, aged between 20 and 40, had entered Malaysia using tourist visas and are believed to have been operating the scam from Melaka for the past two months.

“The suspects have been remanded until June 26 to facilitate further investigations,” Zulkiflee said.

Contents

01

Victims Lured Through Telegram Investment Groups

02

Investment Scams Continue to Rise in Melaka

03

Victims Urged to Act Quickly

Victims Lured Through Telegram Investment Groups

Preliminary investigations indicate that the syndicate specifically targeted individuals in South Korea and China by promoting fraudulent stock investment opportunities through Telegram.

The scam reportedly began with victims receiving invitations to join Telegram investment groups, where they were exposed to advertisements promising attractive returns from stock trading activities.

To reinforce the legitimacy of the scheme, syndicate members allegedly encouraged victims to download an investment application known as HANWHA, claiming it provided access to profitable stock investment opportunities.

Once victims registered on the platform, they were persuaded to transfer funds into investment accounts with the promise of high and guaranteed returns. Authorities believe the application was used solely as a tool to convince victims that their investments were generating profits, while in reality no legitimate trading activity took place.

The investigation remains ongoing, and police have not yet disclosed the total number of victims or the amount of financial losses linked to the operation.

Police Seize Computers, Mobile Phones and Digital Equipment

During the raid, investigators confiscated a range of electronic devices and equipment believed to have been used to facilitate the scam operation.

Items seized included 26 desktop computer sets, 50 mobile phones, an internet router, and remote access devices and related communication equipment.

Authorities believe the seized devices will provide valuable digital evidence to identify additional syndicate members, trace financial transactions, and determine the full scale of the operation.

The case is currently being investigated under Section 420 of Malaysia's Penal Code for cheating, an offence that carries severe criminal penalties upon conviction.

Police have also appealed to members of the public to remain vigilant and report suspicious activity involving residential properties that may be used as illegal call centres or online scam operations.

“If residents notice unusual activities or suspect that a property is being used for criminal purposes, they should immediately lodge a report with the police,” Zulkiflee said.

Investment Scams Continue to Rise in Melaka

During the same press conference, Zulkiflee expressed concern over the increasing number of fraud cases recorded in Melaka this year.

Police statistics show that between January and May, the number of scam cases reported in the state increased by 19.18 percent compared with the corresponding period last year.

More alarmingly, the total financial losses suffered by victims rose by 61.04 percent over the same period, highlighting the growing sophistication and financial impact of organised scam syndicates operating both locally and across international borders.

The police chief urged the public to exercise greater caution when approached with online investment opportunities, particularly those promising exceptionally high returns or requiring participation through messaging platforms such as Telegram.

He reminded investors to verify the legitimacy of investment platforms before transferring any funds and to avoid downloading applications recommended by unknown individuals without conducting proper due diligence.

Victims Urged to Act Quickly

Authorities also advised anyone who believes they have fallen victim to an investment scam to take immediate action.

Members of the public are encouraged to contact Malaysia's National Scam Response Centre (NSRC) by calling 997 as soon as fraudulent activity is detected. Early reporting may improve the chances of tracing transactions and preventing additional financial losses.

Victims are also urged to lodge a police report without delay to assist investigators in identifying criminal networks and recovering digital evidence.

Law enforcement agencies have repeatedly warned that many international scam syndicates establish temporary operational bases in Southeast Asia, using foreign nationals recruited under the guise of legitimate employment while targeting victims in other countries through sophisticated online marketing campaigns and fake investment platforms.