JOHOR BARU: A hardware store owner was cheated of RM3.4 million by a woman claiming to be a bank officer through an elaborate fixed deposit scam.
The victim, in his report to the police, claimed that he was approached by a woman claiming to be an officer from a banking institution based in Kuala Lumpur and was offered a fixed deposit scheme with attractive interest rates in January 2018.
The 62-year-old victim made RM3.4 million worth of investments using four banker's cheques and six personal cheques between April 3, 2019, and March 23, 2023.
State police chief Commissioner M Kumar said the payments were made to Hong Leong Investment Bhd and Hong Leong Assurance Bank, and were handed to the supposed bank officer.
"We have requested images of the cheques from the banks to establish how the cheque was cleared, given that the payee was addressed to the bank," he said.
The victim received RM70,000 in interest on the deposit in 2020, which boosted his confidence in the scheme and encouraged him to continue investing.
However, in January this year, when he tried to withdraw the returns on the investments, the woman gave him various excuses.
This prompted the victim to visit the bank's branch, and he discovered that the payment receipts provided by the suspect were fake and there was no fixed deposit account under his or his company's name.
He also found out that the funds he invested were transferred into other individuals' bank accounts and that the fixed deposit scheme was a scam.
The fixed deposit scheme is a tactic used by scammers to deceive consumers into transferring funds into a bank account that seems linked to an investment or an account in the consumer's name for the appearance of legitimacy.
The account, however, is controlled by the scammers and is often registered with a reputable bank that does not offer the supposed investment scheme, leading consumers to believe they are investing safely when they are actually being defrauded.
Kumar said the case was being investigated under Section 420 of the Penal Code for cheating.