The Securities Commission Malaysia (SC) has issued a warning to the public about investment scams that lure investors with pre-Initial Public Offering (IPO) shares of companies aiming to list on Bursa Malaysia.

These scams often involve private placement offerings and are typically timed with upcoming IPO listings announced on Bursa Malaysia’s website.

Scammers posing as ‘agents’ create public WhatsApp groups to promote these pre-IPO investments, adding potential victims to the groups unsolicited.

The schemes may feature fake testimonials from supposed investors to appear credible.

Payments for the ‘subscriptions’ are directed to bank accounts not affiliated with the IPO, often suspected of being mule accounts.

On the IPO listing day, these ‘agents’ falsely claim that the shares have been listed and have made profits, demanding additional payments for the shares to be allotted. This fraudulent tactic aims to extract more money from victims.

The SC has received numerous complaints and inquiries from investors reporting significant losses, amounting to over RM800,000.

The regulator said in a statement,

“The SC views this matter seriously and will continue to monitor and take appropriate action against such investment scam activities.

 

In addition, the public is advised to be vigilant in evaluating investment offers including ensuring that they do not transfer or deposit money into suspicious accounts.”

Investment offers can be verified through the SC Investment Checker.