This is based on 154 bank statements that were reviewed.

The findings revealed that the scammers would target victims or “investors” who were willing to part with a small amount of money with the expectation of making huge returns in a short period of time, a statement from SC said today.

“Clone firms” are those that fraudulently impersonate a legitimate or a licensed entity, including misusing the name and logo of a public-listed company, corporate credentials and website, to dupe investors and solicit funds, the SC said.

“Given that most of the victims lost only a small amount of money, many were reluctant to come forward to cooperate with the SC,” the statement said.

These scams typically involved putting out advertisements on social media to lure investors with investment packages guaranteeing high returns and seemingly managed by “licensed intermediaries”, the SC said.

Apart from that, a large number of “agents” are used to trick potential victims, soliciting investments through WhatsApp chats once the victims clicked on the link provided.

They then request victims to deposit money for the “investment schemes” into bank accounts held by “mule” account holders.

In the course of the investigation, at least 32 “mule” account holders were identified, the statement said.

The operators generated a large amount of illegal proceeds given the large number of victims.

The statement said in one of the scams, approximately RM3.6 million flowed through one “mule” account within six months.

Out of 24 victims identified, 15 declined to cooperate with the regulator. The SC is currently reviewing available evidence and considering various enforcement options.

Investors have been urged to be vigilant when evaluating investment opportunities. This includes checking the legitimacy of individuals or entities who approached them to invest in an investment scheme marketed through social media and WhatsApp chats, the statement said.