How To Look Out For Scams

Red Flags To Watch Out For In Scams
Article Image

We have all received suspicious messages, whether through calls claiming that we have won a grand prize in a competition we never entered, or emails from ‘police officers’ threatening legal action if alleged outstanding fines are not settled immediately. Although we often consider ourselves seasoned users of digital technology and the internet, digital fraud can still deceive us.

With the rapid advancements in digital technology, particularly in the financial sector, fraud and misconduct are now rampant in Malaysia. Catching red flags of scams early on can help protect your hard-earned money and savings.

Can you spot the red flags?

Here are some instances in which you may have encountered yourself and wondered, “Is this a scam?” 

Situation 1

back chevron

Pak Ahmad receives a call from an unknown private number. The caller claims to be a police officer and informs that Pak Ahmad's personal data has been compromised. The caller urgently requests his bank account information for verification and asks Pak Ahmad to confirm the transaction authentication code (TAC) he received.

Red Flag 1: Contacted out of the blue with a private number.

Authorities and financial institutions will not contact you using a private number. If you receive a call from an unknown private number, be cautious. Always verify the contact details on the official website of the institution or organisation in question. 

Red Flag 2: Creating a sense of urgency.

Scammers often use a sense of urgency to pressure you into making hasty decisions. They may employ threatening language or imply immediate action is required, which can cloud your judgement and discourage you from questioning the legitimacy of the situation. 

Red Flag 3: Requesting private information.

Authorities and legitimate financial institutions will not request personal information via telephone, email, or messages. Exercise caution if you receive calls asking for details such as: 

  • Credit or debit card number and CVV 
  • Online banking username and password 
  • OTP or TAC codes received via text message (SMS) 

Situation 2

back chevron

Siew Lynn meets Sam on a dating app and develops a relationship with him. They become close and communicate frequently via WhatsApp. Sam invites Siew Lynn to join him in his new business venture, promising substantial returns in a short period. He avoids providing details about the business and requests a down payment of RM50,000. After Siew Lynn makes the payment, Sam becomes uncontactable. 

Red Flag 1: A business venture too good to be true.

If something sounds too good to be true, it most likely is. Similarly, an investment opportunity promising high returns with minimal risk and a short time frame should be approached with caution. Always research the business or investment scheme thoroughly to verify its legitimacy. In this case, Sam exploited Siew Lynn’s trust, making it easier for her to be deceived. 

Red Flag 2: Reluctance to share information on the business.

A genuine business will be transparent about its operations, including information about its directors, shareholders, and financial status. Reluctance to disclose such details is a significant red flag. The same caution should be applied when evaluating promotional offers for investment schemes. 


Steps to take after getting scammed 

If you find out you’ve been scammed, don't panic. Keep calm and follow these steps:

  • Immediately call your bank’s scam hotline or the National Scam Response Center (NSRC) at 997 (available daily from 8am-8pm); 
  • File a police report  

Calls to the NSRC should be made within 24 hours of the scam. If you're unsure of your bank’s hotline, visit #JanganKenaScam for immediate contact details.