21 Suspects Nabbed by Malaysian Police in Crypto Investment Fraud Targeting Japanese Nationals

Dismantling of Cryptocurrency Fraud Syndicate

In a swift crackdown, the Royal Malaysia Police (PDRM) dismantled a crypto investment scam ring targeting Japanese citizens.

The operation was conducted on August 19, with separate raids on two high-end residential properties in Malaysia’s capital, Kuala Lumpur.

The call centre had been operational for a mere month before the raids uncovered the elaborate scheme.

Authorities arrested 21 individuals, comprising a diverse mix of nationalities: 16 Chinese men, one Chinese woman, one Lao woman, and one man each from Hong Kong and Myanmar, alongside a local Malaysian man who served as the operation's caretaker.

These individuals, aged between 22 and 37, were allegedly employed as customer service representatives, a guise under which they perpetrated their fraudulent activities.

Deceptive Tactics: High Fences and Secluded Bungalows

The call centre’s choice of location was no coincidence. Datuk Seri Ramli Mohamed Yoosuf, Director of the Bukit Aman Commercial Crime Investigation Department (CCID), described the strategic use of luxury bungalows to conceal the illegal operations.

Ramli stated during a press conference at Menara KPJ:

“The syndicate used luxury bungalows, surrounded by two layers of high fences and situated far from the main road, to conceal their activities from authorities.”

This physical isolation was a key element of their strategy to evade detection, utilising the opulent surroundings to give the appearance of legitimacy while running a highly organised scam.

Tinder and 9monsters as Tools of Deceit

The fraudulent operation employed modern tactics, exploiting social media platforms to ensnare unsuspecting victims.

Investigators discovered that the scammers primarily utilised dating apps like Tinder and 9monsters to identify potential targets, initiating contact and building trust.

From there, victims were manipulated into investing in fraudulent schemes through applications like Bitbank and CoinCheck.

These platforms were carefully chosen for their perceived legitimacy and user-friendly interfaces, which made it easier for the scammers to execute their deception without raising immediate suspicion.

Ramli highlighted this process, emphasising the ease with which victims could be swayed:

"The arrested individuals were involved in seeking victims through social media platforms, such as Tinder and 9monsters. Victims were then lured into investing, via the Bitbank and CoinCheck applications."

How Foreign Workers Orchestrated the Scam

The investigation further revealed that the operation was meticulously planned, with the foreign suspects having entered Malaysia on Social Visit Passes.

These individuals were remunerated not through conventional salaries but via commissions, receiving 20% of the total money scammed from victims.

This commission-based payment structure incentivized the workers to maximise their efforts in defrauding victims.

The authorities seized an array of equipment used in the scam, including 17 computer sets, 55 mobile phones, a router, and other technological devices, indicating the scale and sophistication of the operation.

Ramli detailed, highlighting the significant resources dedicated to the scam:

"Following the arrests, police seized 17 computer sets, 55 mobile phones of various brands, a router, a set of keys, and two alarm units."

Police Urge Public to Trust Only Official Investment Bodies

Following the arrests, the local suspect was released on police bail on August 25, after his remand period ended.

However, the remaining 20 foreign individuals remain in remand detention under the Immigration Act 1959/63.

The case is being investigated under Section 420 of the Penal Code, which deals with cheating and dishonestly inducing delivery of property.

Ramli took the opportunity to caution the public against falling for similar schemes, warning against investment opportunities that are presented through social media.

"There is no need for uncertainty regarding this matter. The public is advised to be cautious and clear about such investments," he stressed.

He advised potential investors to rely only on schemes recognised by official investment bodies in Malaysia, such as the Securities Commission Malaysia and Bank Negara Malaysia, to ensure the legitimacy and security of their investments.

This case exemplifies the increasingly sophisticated tactics employed by scam syndicates and highlights the importance of vigilance and awareness in safeguarding against fraud, particularly in the realm of digital finance and cryptocurrency investments.