Johor Bahru, Johor, Malaysia – An insurance agent reportedly lost RM372,645 after falling victim to a non-existent investment scam.
Deputy Chief of Johor Bahru South District Police, Superintendent Azrul Hisham Mohd Shaffee, said police received a report regarding the incident involving a 36-year-old local man.
According to Azrul Hisham, the incident began on September 28, when the victim came across an investment advertisement on Facebook and contacted the phone number listed in the post.
“The victim was instructed to download an application called SDXA Global from Google Play and to register an account using his personal information.
He was promised attractive investment returns but received nothing after making several payments,” he said in a statement today.
Investigations revealed that the victim made 26 bank transfers between September 28 and November 4 to four different bank accounts registered under Sadokis Capital Sdn Bhd and Sadokis Construction Sdn Bhd.
“The victim realised he had been scammed after failing to receive any returns and was later asked to make additional payments to ‘withdraw’ his supposed profits,” Azrul Hisham said.
Police are currently conducting further investigations, including obtaining details of the bank accounts involved, recording statements from bank representatives, and working with telecommunications companies to identify the suspect’s phone number owner.
The case is being investigated under Section 420 of the Penal Code for cheating, which carries a penalty of imprisonment of one to 10 years, caning, and a fine upon conviction.
HackWarn Alert
Why did the investment scam succeed?
The scammer exploited psychological manipulation and digital trust to deceive the victim.
i) Social media credibility: Fraudsters often use Facebook ads or pages with fake testimonials to appear legitimate.
ii) Tech-based deception: The use of a mobile app like SDXA Global gave the illusion of an organised investment platform, increasing perceived authenticity.
iii) Promise of high returns: Unrealistic profit guarantees triggered the victim’s confidence bias believing easy gains were possible.
iv) Step-by-step grooming: By guiding the victim to download an app and provide personal data, the scammer built trust and control before demanding payments.
How to avoid similar investment scam?
i) Verify the company’s legitimacy – Check investment licences with Bank Negara Malaysia (BNM), Financial Consumer Alert List or the Securities Commission (SC).
ii) Avoid downloading unverified apps – Only install investment platforms from official, regulated financial institutions.
iii) Be wary of “too good to be true” promises – Guaranteed high returns or pressure to invest quickly are major red flags.
iv) Use official verification channels – Before transferring funds, verify company registration through SSM (Companies Commission of Malaysia).
v) Report suspicious schemes – Contact the CCID Scam Response Centre at 03-2610 1559/1599 or use the Semak Mule portal to check bank account legitimacy.
Source: BERNAMA
