MELAKA: Melaka Police have smashed non-existent stock investment syndicates in the state from January to October this year and solved 26 cases of scam involving a total loss of RM3.2 million.
Melaka police chief Datuk Abdul Majid Mohd Ali (pix) said most of the syndicates were operated by foreigners who made Melaka as the call centre for criminal activities with some of them merely using social visit passes.
“Usually, the syndicate will create a stock investment website and through that website, they will start luring victims using some communication tactics and transcripts. If the victim suspects the call is a scam, they would immediately shut down the line.
“Similarly, when money transactions are running and when the victim suspects there is an element of fraud, they will immediately delete the stock investment website,“ he said at a press conference at the Melaka contingent headquarters here today.
He said among the factors attracting these stock investment syndicates to choose Melaka as a call centre were low rental of premises and the good telecommunication system available.
He said the latest arrest by the team from the CID Anti-Vice, Gambling and Secret Societies (D7) branch, involved 16 foreign men aged between 20 and 45 years in separate raids at the condominiums in Jalan Tun Perak and Taman Kota Laksamana on Nov 24 and 27.
Abdul Majid said the initial investigation found that the stock investment syndicates were targeting victims from China and they identified their victims from those are already involved in stock investment.
He added that the case is being investigated under Section 420 of the Penal Code for fraud, Section 6 (1) (c) of the Immigration Act 1959/63 for not having valid travel document and Section 15 (1) (c) of the same act for overstaying. — Bernama