Malaysian retiree loses $118,000 to Facebook crypto scam in seven transactions

Police in Malaysia are investigating a crypto investment scam that allegedly duped a 71 year old retiree out of RM 525,000 (over $100,000) after he was promised high returns on his savings.

The incident occurred in Kuala Terengganu where scammers contacted the victim through online communication after he encountered a Facebook advertisement promoting what turned out to be a crypto investment scam, local outlet Malaysiakini reported on Sept. 29.

In recent times, Facebook ads have gained a notorious reputation for being a common tool used in crypto investment scam operations. Scammers employ them to funnel victims toward fake crypto exchanges or fraudulent platforms designed to siphon funds.

These ads often feature fabricated celebrity endorsements or claim links to major crypto projects making the crypto investment scam appear professional and convincing enough to deceive unsuspecting users.

Although the Malaysiakini report did not provide extensive details of this scam, Kuala Terengganu district police chief Azli Noor confirmed that the victim was promised returns of $500,000. Noor added that the retiree made seven transfers into the suspect’s account between Aug. 20 and 27 using his retirement savings.

As of press time, no arrests have been made but police believe a wider criminal syndicate is behind this scam.

Crypto investment scam cases surge in Malaysia

Earlier this year, Malaysian authorities warned that criminals were increasingly targeting locals particularly senior citizens with crypto investment scam tactics.

Bukit Aman Commercial Crime Investigation Department Director Datuk Seri Ramli Mohamed Yoosuf explained that fraudsters often impersonate regulators, banks, or police officers to build credibility and pressure victims into transferring funds.

He noted that with technology such as AI generated voices and deepfake visuals, scammers are staging more convincing impersonations that are harder to detect until it’s too late.

Alongside rising crypto investment scam incidents, Malaysia has also seen growth in illegal crypto mining operations. Police have conducted multiple raids in the past year uncovering stolen electricity and unlicensed hardware used to power mining farms.

Despite these risks, Malaysia continues to foster its crypto economy. The Securities Commission has issued a consultation paper proposing updates to the digital asset framework aimed at boosting investor protection and limiting exposure to crypto scam activities.