PDRM Warns Public on Rising Crypto Frauds

KUALA LUMPUR, 17 March 2025 – The Royal Malaysia Police (PDRM) have issued a warning to the public, advising against rushing into cryptocurrency investments due to a spike in crypto frauds linked to digital assets. The statement follows reports of investors losing millions of ringgit to scams disguised as legitimate trading platforms.

The Rise of Crypto Frauds

Cryptocurrency has gained massive popularity in Malaysia over the past decade. Digital assets such as Bitcoin, Ethereum, and stablecoins have been marketed as high-yield investment opportunities, attracting both experienced traders and new investors. However, the industry’s rapid growth has also given rise to fraudulent schemes.

Police have observed an increase in Ponzi schemes, pump-and-dump scams, and fake trading platforms that promise unrealistic returns. Many victims have lost their life savings after being lured by false promises of quick profits and minimal risk.

Official Statement from PDRM

Speaking on the matter, Commercial Crime Investigation Department (CCID) Director Datuk Seri Ramli Mohamed emphasized the need for greater vigilance.

“We have received numerous reports of victims being tricked into investing in fake crypto trading platforms. Scammers use high-pressure tactics and fake success stories to lure in unsuspecting investors,” he stated.

The CCID has urged the public to verify the legitimacy of any cryptocurrency platform before investing. Officially regulated exchanges must be registered with the Securities Commission Malaysia (SC).

How the Scams Work

Authorities have identified common methods used by fraudsters, including:

• Social Media Promotions – Fake investment ads on Facebook, Instagram, and TikTok promise huge returns with no risks.
• Ponzi Schemes – New investors are paid using funds from earlier investors, creating the illusion of profitability.
• Phishing Attacks – Fake websites resembling legitimate exchanges trick users into providing login details and financial information.
• Celebrity Impersonation Scams – Fraudsters use fake endorsements from well-known figures to gain credibility.

Victims’ Stories and Impact

Many Malaysians have come forward with heartbreaking stories of financial ruin. One victim, a 38-year-old businessman, revealed that he had invested RM200,000 in a crypto project that later disappeared overnight.

“They showed me fake earnings reports and promised massive returns. Once I put in more money, they shut everything down,” he said.

These scams have not only affected individuals but have also impacted businesses that invested in fraudulent blockchain projects.

Preventive Measures and Authorities’ Actions

The Malaysian Securities Commission (SC) has intensified its efforts in regulating digital asset platforms. Only licensed exchanges are allowed to operate legally in Malaysia. A full list of approved platforms can be found on the SC’s official website.

Meanwhile, police have set up a dedicated cybercrime hotline for victims of investment fraud. Legal experts advise investors to always conduct due diligence, checking the SC’s registry of licensed exchanges before making any financial commitments.

A Cautious Approach to Crypto Investments

While cryptocurrency remains a legitimate financial asset, PDRM urges the public to exercise caution and avoid offers that sound too good to be true. Proper education and awareness are key to preventing financial loss and ensuring that investors safeguard their assets from fraud.

For more updates on financial scams and investment safety, stay informed with ForwardMalaysia.my.