Securities Commission Malaysia Warns Public About Fake Investment Scams

The Securities Commission Malaysia (SC) today has issued a cautionary statement regarding a new investment scam that involves fraudulent Information Memorandums (IMs). The SC revealed that a company has been misleading potential investors by falsely claiming that its IM has been lodged with or endorsed by the SC. According to the Capital Markets and Services Act 2007 (CMSA), unlisted public companies must lodge IMs with the SC within seven days of issuance. However, this lodgment does not imply any form of endorsement by the SC.

The SC has determined that the company in question did not actually lodge any IM with them. This misrepresentation was aimed at giving undue credibility to the company's investment scheme. The SC has taken immediate action by filing a police report and adding the company to its Investor Alert List, which can be accessed at SC Investor Alert List. The commission stressed that such fraudulent actions could mislead the public into believing that the SC endorses and approves the investment product. They strongly advise the public to verify any claims involving the SC's name or its officers and to report any suspicious activities or investment offers to the SC to protect themselves from potential risks and make informed investment decisions.