Crime & Courts

Indonesian woman loses RM4.28 million to forex investment scam

KUALA LUMPUR: An Indonesian woman living in Singapore lost more than S$1.3 million (RM4.28 million) to a foreign exchange (forex) investment scam.

The woman claimed a friend had invited her to invest in the latter's forex company in Indonesia as she was going to open up another company in Labuan.

The woman claimed she had also gotten her friends to invest in the company.

"I was initially invited to join by a friend so I didn't think much of it and started investing in 2020.

"This friend claimed to own a forex company in Jakarta and told us that she was opening up another company in Labuan and told us to join as introduction brokers and would receive commissions from clients we bring in.

"I did not think much of it and invested S$1.3million in 2020 and also invited other friends to join in as well," she told reporters outside the Dang Wangi police headquarters.

The woman, who wanted to remain anonymous, said it was all going well at first and she managed to make several withdrawals on the profit she made.

"That however began to change in April last year. They gave many excuses and claimed there were compliance and liquidity issues," she said adding that in December, she was informed that the business restrictions had been placed on the company by the "Labuan Offshore Financial Services Authority" (LFSA).

She said the company told them to do a broker-to-broker transfer with another company based in Dubai to facilitate further withdrawals.

"We were told that our withdrawals have been approved and would be transferred to us by September this year but we have not seen anything until now.

"I believe the company is involved in fraud and criminal breach of trust," she said, adding that she hoped the police would investigate the matter.

Meanwhile, Malaysia International Humanitarian Organisation (MHO) secretary-general Datuk Hishamuddin Hashim said they have received 70 complaints involving victims from Indonesia, Singapore and Brunei over the same forex scheme.

"We estimate that these victims have lost RM 38.08 million," he said, urging police to investigate the matter for fraud, criminal breach of trust and under the Anti-Money Laundering Act (AMLA).

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