Malaysia is experiencing a surge in cryptocurrency investment scams, with authorities cautioning that more professionals and senior citizens are being targeted by fraudsters.
Authorities Raise Alarm Over Crypto Scams
Bukit Aman Commercial Crime Investigation Department (CCID) Director Datuk Seri Ramli Mohamed Yoosuf issued a warning in a report on March 17, urging older investors, especially those over 60, to exercise caution before engaging in cryptocurrency investments.
Ramli highlighted a recent case where a 74-year-old victim lost tens of millions of ringgit to a crypto scam. Many victims, he explained, mistakenly believe that buying multiple cryptocurrency coins—each worth hundreds of thousands of ringgit—ensures significant profits. However, in reality, “no investment is made, it’s purely a scam.”
Sophisticated Scams and AI-Powered Fraud
Beyond cryptocurrency-related fraud, Malaysian authorities remain concerned about phone scams. Crypto scammers often pose as trusted entities—such as financial regulators, banks, or law enforcement—to deceive victims into handing over their funds. Ramli emphasized that legitimate agencies, including the police, tax office, and central bank, do not engage in multi-step phone calls transferring victims between departments.
“There’s no such thing as a call that starts with a courier company, then connects to the police, the bank, and the audit department—all in one conversation,” he clarified.
Ramli attributed the rise in scams to rapid technological advancements, allowing fraudsters to employ more sophisticated techniques. Scammers are increasingly leveraging AI-based tools and deepfake technology to enhance the credibility of their schemes by impersonating authorities and legitimate crypto projects.
Authorities Deploy AI and Blockchain to Combat Scams
In response to these growing threats, Malaysian authorities are adopting AI and blockchain-based solutions to detect fraud and track illicit transactions more effectively. Law enforcement agencies are ramping up efforts to dismantle these syndicates, particularly in high-risk areas such as Selangor, Kuala Lumpur, and Penang.
“As law-abiding citizens, do not be afraid and don’t fall for these scams, you could end up losing millions,” Ramli cautioned.
Crackdown on Crypto Fraud and Illegal Mining
Despite the rising number of scams, Malaysian authorities have made significant progress in cracking down on financial crimes. According to Ramli, the CCID’s efforts led to the arrest of 23,000 individuals linked to scam syndicates last year—a milestone he described as a “significant achievement.”
Beyond crypto investment fraud, Malaysia has also been dealing with an uptick in illegal Bitcoin mining operations. As reported earlier, authorities have uncovered cases where miners illegally tap into the power grid, causing losses worth hundreds of millions of ringgit.
As scams become increasingly sophisticated, Malaysian authorities continue to enhance fraud detection strategies, urging investors to remain vigilant and avoid falling victim to fraudulent investment schemes.
