Looks like the scam business is flourishing. There's no end to eradicate these scumbags.
We read headlines of scam farms being bombed at the Myanmar/ Thai border and arrests, even death sentences were handed down to scam kingpins in Cambodia by the Chinese government, but new ones are still emerging.
Are scams making a comeback?
https://newswav.com/article/good-news-for-scam-victims-A2603_SFkEE3
It's ironical. We read news of Malaysians working as scammers overseas being arrested when we have scam operating in our own backyard. This time, it's closer to home - Penang!
Penang lang - well known with Jho Low taking the lead, is back in the news.
My home state, famous for its high-tech semiconductor manufacturing and the economic powerhouse of Malaysia https://share.google/XZlFbkNV7J9MRwtAE has achieved another record internationally - not in export of semiconductors, but - in manufacturing - SCAMs.
History of Penang originated Scams.
About two decades ago we had the infamous Island Red Cafe investment scam. ( I was one of the victims, lol). You invest a small sum, have a stake of the company as a member, and you get to drink discounted premium coffee using bonus points at their new trendy cafes called - IRC Cafes.
The coffee drinking culture was the craze back then. IRC capitalized on this trend and started opening cafes all over the island. Hiding behind these trendy cafes was a venue used to sponsor other members in it's illegal Ponzi Investment Scheme.
It grew and scammed thousand of ordinary people out of their life savings until it was busted and wind up about 6-7 years later.
Then came the megastar of Ponzi Investment Scheme - MBI, operated by Tedy Teow. He pulled off one of Asia's largest Ponzi schemes by dubbing 2- 11 million people in China, Thailand and Malaysia.
Taking in billions from investors in fake investments, promising high returns, it hookwink investors by building impressive theme parks, partnering property developers, and building new townships in Kulim, Kedah, (Desa Ku.) and Dinosaur Park, Danok, Thailand. Investors were taken on trips to these places to impress them. They even have their own e-hailing services called - MULA. Half of Penang's Times Square mall at Jalan Dato Kramat was taken up by them and renamed M - mall. There they operate their retail business for members selling garments, handphones, watches , handbags, using their MBI credit points as money. Many investors were carried away by this and later scammed off into parting money.
Billions were ripped off. I remember investors from China flew in during it's last days trying to claim their point money when it collapsed.
Now, a new block buster scam just made the headlines. ( see above headline) - a RM 8 billion fraud has been uncovered. And it is from Penang again.
The fraud online investment scheme known only as ‘High Inspiration’ had been scamming small business people from China since 2018.
5% returns on investment monthly - this pyramid scheme did payout initially. But come September 2021 the scheme collapsed. Investors could not withdraw their money.
No one was arrested, but RM 8 billion vanished and the victims crying foul , come from various countries all over the world to Penang to recover their money.
Why is scamming such an attractive business?
Here are the reasons.
Easy start up & Recruitment.
No heavy investment required. Business model is - Enticement, false promises, High returns.
No office, logistics, or capital. Just a laptop with basic computer knowledge
Scamming knowledge already documented in Playbook & Training Manuals. (Love scams, Investment, Crypto Bitcoin., etc...all. Templates available. Training provided for new Scammers).
It's easy.
Just follow the same template done by previous scammers and you're ready to work.
Recruitment ( Job scams)
Easy. Plenty manpower available. Naive, unemployed fresh graduates desperate for jobs are aplenty.
Offer high salary, big perks, free plane tickets, hotel accomodation. Once business grow, rent shop lots and start a scam farm.
Rise of AI, Social media.
These tools have empowered scamming techniques. It gives speed, no boundaries, unanimous false profiles, imitation communication, hacking bank accounts and hiding behind false profiles.
AI has enabled imitation of voice and creation/ impersonation of reputable personality to hook wink and convince people to invest.
Social media enabled the scammers to reach international market. Online communication through cashless transactions, false advertisement, fast communication using Facebook, Tik Tok, Instagram. You name it. Plenty of resources.
3. Human greed.
This insatiable human appetite to have more. Get rich quick. As long as there is a promise of instant wealth, a better tomorrow, higher dividends, flashy lifestyle. Everyone wants that.
4. Wide range of scams.
Ranging from fraudulent investment schemes, Phone scams, Phishing & malware, Impersonation, Love scams, Charity, Tourism, Job scams, etc.. you name it. The possibilities and oppurtunites for scams are endless. A scammer has so many tools and oppurtunites to work on.
5. Rise of cryptocurrency and Bitcoin
This new digital money supposedly to replace physical currency is now penetrated by scammers promising high returns on investment. Favourite personality used to entice is Elon Musk.
6. Ahead of the game.
The scammers are ahead of the law and technology. Most money scammed can never be recovered.
Cybercrime, anti scams alert are the best method the authorities can do. Only prevention. No recovery.
If there are willing people to buy the products, scams will continue to flourish. Besides the penalty for scammers is so light. The authority can only issue warning and prevention on their websites. Detection and prosecution is difficult. That explains why scams cannot be totally eliminated.
Since there's not much the authority can do we can only educate ourselves and prevent from being scammed.
How to identify a scam.
Please use the above link on pointers on how to identify a scam.
Key Signs of scams.
- Urgency & Threats.
- Unusual Payment Requests
- Unsolicited Contact
- Impersonation.
- Suspicious Links.
- Too good to be true.
How to protect yourself.
- Stop & Think. Verify independently
- Don't click links
- Check for errors
- Use Verification Tools.
Check on blacklisted companies by Bank Negara Malaysia. Visit the FCA list.
What to do if scammed.
- Contact bank immediately to freeze account.
- Report to authorities. NSRC at 997 in Malaysia.
- Report to social media/ police.
- Report to the relevant platform and police.
- Check legitimacy of companies through Bank Negara's Financial Consumer Alert Lists.
- Call Bank Negara
1-300-88-5465.
Jack Ung (jack.uct1953@gmail.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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