Beware Of Fake IPO Scams, SC Warns

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Beware Of Fake IPO Scams, SC Warns

The Securities Commission Malaysia (SC) has urged caution regarding potential investment scams enticing investors with pre-Initial Public Offering (IPO) shares of companies seeking listing on Bursa Malaysia.

In a public warning put out earlier today, The SC explained that these scams, mostly involving private placement offerings, are usually timed with upcoming IPO listings published on Bursa Malaysia’s website.

Scams timed to upcoming IPOs

It was also mentioned that the perpetrators of these scams tend to pose as ‘agents’ in order to create public WhatsApp groups to promote said pre-IPO investments. These ‘agents’ tend to add potential victims into said group unsolicited and without consent.

According to the statement, these agents would then try to convince potential victims about the legitimacy of their scheme by using fake testimonials from other investors to appear credible. Payments for the ‘subscription’ will be required to be made to bank accounts of entities not related to the IPO and suspected of being mule bank accounts.

On the IPO listing day, these ‘agents’ will proclaim that the IPO shares have been listed and have made profits, and that additional payments are needed for their shares to be allotted. As noted by the SC, these are fraudulent claims that are being made to convince victims to hand over more money. 

Public can verify IPOs with SC Investment Checker

It is also said that the SC has received many complaints and inquiries form investors that have reported substantial losses, exceeding RM800,000.

The SC ensures the public that it is taking these matters seriously and will continue to work towards ensuring that proper monitoring and appropriate action is taken against such malicious activities.

In the meantime, the public is advised to keep a vigilant eye out when evaluating investment offers. This includes ensuring that they do not transfer or deposit money into suspicious accounts.

The public is also encouraged to verify investment offers through the SC Investment Checker at www.sc.com.my/investment-checker.

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