JOHOR BARU: A plumber, 54, lost RM142,720 to a fake stock investment scheme he found on TikTok.
He saw an advertisement on TikTok that promised a 400 per cent return on stock investments.
Johor Baru South police chief Assistant Commissioner Raub Selamat said the victim contacted the advertiser and was directed to send a message to a WhatsApp number.
A woman claiming to be a stock investment company's customer service officer responded to the message and explained the scheme in detail.
The woman persuaded the victim to register to join the investment scheme.
He was added to a WhatsApp group where he was coached on how to invest in stocks.
Raub said the victim was asked to download an application called "CapMax" to participate in the investment.
He was promised a 400 per cent return in three months.
Between Nov 4 and Dec 21, he made 16 cash transfers to six bank accounts, amounting to RM142,720.
When he tried to withdraw his profits, he was told he needed to pay RM47,000 for tax.
The victim realised he had been duped and lodged a police report today.
Raub said checks with the Semak Mule platform showed that five of the six bank accounts the victim transferred money to were linked to 83 police reports on investment fraud.
The case is being investigated under Section 420 of the Penal Code for cheating.
Raub said action would be taken against the bank account holders if it was found that they gave or sold their accounts to third parties, which is a violation under Section 424B of the Penal Code.
Offenders face up to seven years in jail or a fine of up to RM100,000, or both.
Raub advised the public to remain vigilant against fraudulent schemes that offer unrealistic returns.
He urged people to verify investment schemes thoroughly before making payments.