AMID the COVID-19 pandemic, the proliferation of fraud and scams have left investors vulnerable. In April 2020, Fraud Watch International reported 18 million monitored attempts of phishing and malware attacks across the globe.
In Malaysia, fraud and scams can range from impersonations of Government agencies such as the health authorities or the Inland Revenue Board to scammers posing as licensed capital market intermediaries and financial institutions.
The vulnerability of investors stems in part from the search for yield in the current low-interest rate environment and their unrealistic expectations of the level of returns from their investments.
In this regard, the Securities Commission (SC) continues to enhance awareness of the evolving modus operandi of investment scams by leveraging the mass media and through the SC’s Investsmart social media platforms.
According to the latest issue of The Reporter which has served as an integral communications platform between the SC and the public/industry partners, the market regulator has identified three core focus areas:
- Anti-scam awareness initiatives are given focus through the issuance of media releases, social media platforms, radio announcements and news crawlers on television and the SC website.
- Investor reach pivoted to digital-based investor education through the InvestSmart website https://investsmartsc.my/ and its social media platforms on Facebook, Instagram and Twitter.
- With investors increasingly engaging in digital platforms, the SC’s Investor Alert List continues to provide up-to-date information on illegal websites and electronic platforms.
Below are the SC’s key messages to is licensed intermediaries:
- Maintain operational resilience through establishing robust internal controls, continuous compliance and good governance.
- Always keep up-to-date with regulatory requirements and integrate them into the company’s policies, procedures and practices.
- Learn to adapt to the prevailing circumstances and give special attention to the areas of focus outlined by the SC. As the community becomes more reliant on technology, data governance and cyber security should be made a key priority.
- Communicate and deal with the SC and other regulatory agencies in an open manner. Be proactive and honest when dealing with issues relating to non-compliance.
- Educate customers and investors on the changes taking place in the market and ways they can protect themselves from scams.
The following are the SC’s key messages to the investor fraternity:
- Be vigilant and avoid falling prey to scams and illegal investment schemes.
- Be alert when making online investments and always be on the look-out for phishing attempts.
- Do not give cash to any individuals or bank in monies into personal bank accounts of those who want to deal in investments on your behalf.
- Deal only with individuals or entities that are regulated by the SC:
- Refer to the SC website or utilise InvestSmart mobile application to verify if an individual/entity is licensed by the SC to carry out regulated activities: https://www.sc.com.my/regulation/licensing/licensed-and-registered-persons.
- Check the Investor Alert List available on the SC website to identify unauthorised websites/investment products/companies/individuals: https://www.sc.com.my/regulation/enforcement/investor-alerts/sc-investor-alerts/investor-alert-list.
- For any queries on any investment scheme offered to you or to report suspicious activities and cyber fraud incidents, contact the SC through e-mail at [email protected] or call +603-6204 8999. – Nov 24, 2020
