JOHOR BAHRU: A retired civil servant lost RM1.24 million after allegedly being scammed through a pre-initial public offering (IPO) stock investment in early June.
Johor police chief Datuk M Kumar explained that the 70-year-old man came across an advertisement on Facebook promoting an IPO stock investment that promised quick and high returns, and contacted an individual via WhatsApp to obtain more information.
“Attracted by the offer, he made his first investment and received the promised returns in July, which led him to believe that the investment was legitimate.
“Subsequently, he was promised even higher returns if he increased his investment. So he proceeded to make several transfers, amounting to RM1.24 million, into multiple accounts as instructed,“ Kumar said in a statement today.
He became suspicious after receiving no returns on his additional investments but instead being pressured to invest more.
“He filed a police report yesterday, and the case is being investigated under Section 420 of the Penal Code.
“We advise the public to remain cautious and not be easily swayed by online investment offers that promise quick and substantial returns,“ he added.