Housewives Scammed of Over RM1 Million in Gold Investment Fraud

A fraudulent gold investment scheme has caused significant financial losses for 44 individuals, predominantly housewives, in Kelantan, Malaysia. The victims, collectively, have lost over RM1 million to the scheme, according to the Malaysia International Humanitarian Organisation (MHO).

The organisations secretary-general, Hishamuddin Hashim, revealed that the true number of victims might be considerably higher. He encouraged others who may have been affected to step forward, noting that only a fraction of the potential victims had come forward so far.

The scam was promoted extensively on social media platforms between 2021 and October 2023. It promised high returns by offering gold at below-market prices. Victims were enticed by investment packages that appeared lucrative, especially for those who opted for longer investment periods.

These packages were structured in a way that investors could supposedly lock in gold prices at discounted rates. For instance, a three-month package allowed investors to buy gold at RM300 per gram and sell it at RM400, resulting in an RM100 profit per gram by the end of the term. Similarly, a six-month package claimed to provide higher returns, enabling investors to purchase gold at RM200 per gram and sell it at prevailing market prices, potentially yielding profits of RM200 per gram.

Hishamuddin disclosed that in October 2023, the schemes orchestrator, a man in his late 30s from Kelantan, shifted the promised returns to percentages instead of fixed profits. This alteration coincided with the collapse of the scheme, leaving investors unable to recover their capital or the promised profits.

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