The Securities Commission Malaysia (SC) has published a public warning today regarding the increase in clone firm scams affecting the country. The regulator indicated that “clone firms offer non-existent investment opportunities including in the shares of these PLCs, promising unrealistically high returns within a short span of time.”
The genuine PLCs or public listed companies have garnered investor interest during the COVID-19 pandemic. The targeted entities have lodged police reports and/or made a complaint to the regulator on the cloning of their corporate identities by unknown persons or organizations.
The regulator also indicated that “other than the names and logos of these PLCs, the fraudsters also use corporate credentials, websites, and other details of legitimate entities when promoting these schemes via social media channels such as Facebook, WhatsApp, and Twitter.”
This type of fraudulent activity is unfortunately commonplace around the world and traders and investors are urged to proceed with caution when solicited for any investment opportunity online. To avoid putting yourself at risk, read our guide on How to Avoid Investment Scams.
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