Scam Alert!! Family Loses RM750,000 in “Pyramid” Investment Scheme

What began as a dream of financial success has turned into a nightmare for a local family of five in Kuching (Sarawak). Drawn by promises of high returns from a foreign investment scheme, the family invested a total of RM750,000 in a project in Fangchenggang, Guangxi, China. Five years later, they have yet to receive a single cent.

The family‘s representative, a 32 year old man from Kuching, spoke to the media in a press conference, accompanied by Sarawak United People’s Party (SUPP) Public Complaints Bureau Chief, Wilfred Yap. His story reflects a growing trend in Malaysia where families and individuals are falling victim to cross border investment scams disguised as legitimate business opportunities.

An Irresistible Offer That Turned Into a Trap

The man recalled that the ordeal began in 2019, when a friend introduced him to an investment opportunity in China involving property and tourism projects. The promoters claimed that an investment of RM150,000 (around RMB230,000) could bring a return of RMB39 million.

He and his elder brother, along with his sister in law, travelled to China to attend events, training sessions, and project tours arranged by the organisers. Everything appeared professional and convincing as there were office visits, official presentations, and tours of supposed development sites.

After returning to Malaysia, the family believed they had discovered a once in a lifetime opportunity. The three, together with another brother and their mother, decided to invest RM150,000 each, bringing the total to RM750,000.

“We transferred the money in several payments to personal and company accounts. Most of it came from closing down our family business,” the victim explained. “We believed it was a solid investment that would secure our familys future.”

The Scheme Revealed as a Pyramid Structure

The victim said that over time, the organisers encouraged them to recruit new investors, promising bonuses and higher returns for each person brought in. It was only then that the family began to suspect that something was wrong.

“They asked us to find more investors. That was when it started to feel strange,” he said. “I tried to tell a few friends, but they did not trust it. Years later, we realised it was a complete scam.”

The family filed a police report in Miri last year, which led to the arrest of two suspects (one in Miri and another in Kuching). However, the family has yet to receive any update on whether the case has been brought to court.

A Familys Lifetime Savings Gone

SUPPs Wilfred Yap described the case as a heartbreaking example of how investment scams can destroy lives. He said the family not only lost their savings but also the money obtained from liquidating their business.

“This is a tragedy. The victims believed they were investing in a genuine overseas project,” Yap said. “Many people are still falling for similar scams that promise unrealistically high profits. They think they are making a smart financial move, but in reality, they are walking into a trap.”

Yap urged the Royal Malaysia Police to conduct a thorough investigation and identify whether more Sarawakians had fallen victim to similar schemes. He also appealed to Bank Negara Malaysia to strengthen control over cross-border money transfers and monitor unusual transactions that may be linked to fraudulent activities.

“The authorities must take these cases seriously. Many scams operate under the guise of international investment, using professional presentations to gain the trust of ordinary Malaysians,” Yap said.

Investment Scams on the Rise in Malaysia

Financial scams have become more sophisticated in recent years. Many fraudsters now operate online or across borders, making their schemes difficult to detect. They use social media, messaging apps, and even in-person events to build credibility.

Victims are often shown glossy brochures, fake documents, and photos of construction sites or company offices. They are told that the projects are backed by international investors or registered overseas. Once funds are transferred, communication slows down and eventually stops.

In many cases, victims discover that the so-called company either does not exist or operates in an offshore jurisdiction where investor protection is weak. Recovering money in such cases is extremely difficult.