Scammers using shell companies, fake businesses to move their money, says CCID chief

KUALA LUMPUR: Beyond just making use of mule account holders, scammers are now setting up shell companies and fake businesses to move their ill-gotten gains.

“So far we have detected 86 shell companies and 70 dubious businesses used by scam syndicates,” Comm Datuk Seri Ramli Mohamed Yoosuf told a press conference on Monday (Nov 20).

The Bukit Aman Commercial Crime Investigation Department (CCID) director said there is a need to impose stricter procedures and requirements in setting up businesses.

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“Requirements such as checking for criminal and financial records should be considered as well by the relevant authorities,” he added.

Comm Ramli said stricter rules and regulations should also be imposed before any company or business could open a bank account.

“We hope the government can consider imposing the shared responsibility framework introduced by the Singapore government to curb phishing scams.

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“Through this framework, financial institutions that fail to play their part are liable for the losses incurred by victims,” he said.

He also cited an example of an investment scam using the Malaysia Investment Development Authority (Mida) name in Melaka on Nov 9.

“The victim suffered RM585,700 in losses after joining the investment scam, which promised high returns within three to six hours of investment;the investigation revealed that the syndicate has been operating since October last year via social media sites.

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“They offered investments starting from RM300 up to RM2,000,” he said.

Comm Ramli said 28 police reports have been lodged against the syndicate, involving losses of RM1.2mil.

“Mida has also issued a warning on its social media page and website of a syndicate using its name,” he said.