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A TRADER in his early 50s has lost almost RM900,000 after allegedly being manipulated by a sophisticated phone scam syndicate that posed as insurance officials and police investigators in an elaborate fraud operation spanning more than a month.
Kuala Terengganu police chief ACP Azli Mohd Noor said the victim suffered losses amounting to RM882,920 after being deceived into transferring his entire savings into bank accounts controlled by the syndicate.
According to police, the ordeal began on March 23 when the victim received a telephone call from an individual claiming to represent an insurance company.
The caller allegedly informed the trader that his identity had been linked to multiple fraudulent medical insurance claims at a private hospital, accusations which the victim immediately denied.
“The victim’s call was then connected to another suspect posing as a police officer, supposedly for the purpose of filing an online report.
“In addition to the fake health insurance claims, the victim was also allegedly implicated in money laundering and corruption activities. To resolve the case, the victim was instructed to open two new bank accounts and transfer all his savings into those accounts for investigation purposes,” Azli said in a statement on Wednesday.
Fearing arrest and possible legal consequences, the victim complied with the instructions and transferred funds from his Lembaga Tabung Haji account, Amanah Saham Bumiputera holdings and Amanah Saham Wawasan investments into the newly-opened accounts.
Police said the syndicate further instructed the victim not to use the accounts or carry out any financial transactions until the so-called investigation had concluded.
However, suspicions began to emerge after the scammers continued demanding additional transfers even after the victim had emptied his savings.
“However, the victim became suspicious as even after transferring all his savings, the suspects continued pressuring him to make further transfers into the two new bank accounts.
“The victim later checked the account balances and discovered several outgoing transfers from the two accounts to unknown accounts between March 29 and May 4,” Azli said.
Realising he had fallen victim to fraud, the trader lodged a police report at 12.36pm on Tuesday.
Authorities are now investigating the case under Section 420 of the Penal Code for cheating and dishonestly inducing the transfer of property.
Police have again reminded the public that genuine law enforcement agencies and financial institutions will never instruct individuals to transfer personal savings into other accounts for investigative purposes. - May 7, 2026