Last updated : 3/15/19 3:18 PM     

EPF Members Warned From Getting Involved With Fraud

Systems in Place to Detect Fraudulent Withdrawals Attempts

 

The Employees Provident Fund (EPF) is reiterating its stern warning to its members and other individuals from getting involved with fraudulent activities involving EPF withdrawals.

 

In a statement issued today, EPF General Manager for Public Relations, Encik Nik Affendi Jaafar said, “The EPF is reaffirming its commitment in the combat against fraudulent withdrawals which deplete members’ retirement savings and go against the very core of EPF’s objectives.”

 

Fraudulent withdrawals involve the submission of false documents by members to facilitate the approval of withdrawal from their own account.

 

From January to December 2009, a total of 96 court summons have been filed against EPF members for their involvement in making fraudulent EPF withdrawals under housing, incapacitation, education and pensionable employees.

 

During the same period, 35 EPF members were found guilty by the courts for fraudulent withdrawals. The remaining 61 cases are still pending for court actions.

 

Under the EPF Act 1991, those found guilty of fraudulent withdrawal, or attempted fraudulent withdrawal, are liable to a maximum jail sentence of three years or a RM10,000 fine, or both. Those convicted members who return the amount of money withdrawn within six months from the conviction date may only be allowed to apply for the same withdrawal after two years from the date the amount is returned. Those who fail to do so will forever lose their right to make that particular withdrawal.

 

“Members should be forewarned that the EPF currently has processes and systems in place to enable it to detect any fraudulent withdrawals or attempted fraudulent withdrawals,” he said.

 

“The processes in place not only allow early detection of unscrupulous fraudulent attempts, they also equip EPF officers with tips to identify fraudulent cases just by checking the application form and supporting documents submitted by members. EPF officers are also constantly updated with the latest information pertaining to fraud cases specifically on the modus operandi used by members or syndicates.”

 

Each and every withdrawal application received by the EPF will be thoroughly reviewed and validated with the relevant parties to ensure its authenticity. Once confirmed that the application is indeed a scam, a police report will be filed immediately.

 

“The EPF is giving a firm warning to all dishonest members and syndicates that their actions in committing fraudulent EPF withdrawals will not go unnoticed. Even if they think they are safe, the EPF has its own means to detect fraudulent cases and will not hesitate to take strict legal actions against them.

 

“Moreover, EPF processes are designed to continue detecting members who have made fraudulent withdrawals even after the withdrawals have been successfully made. Those involved will eventually be reported to the police and will have to face the legal consequences,” he said.

 

EPF members are strongly advised to play their role in putting a stop to fraudulent activities by steering clear of syndicates that might tempt them to commit fraudulent withdrawals and to report them to the EPF or the police immediately.

 

“Any member who wishes to apply for EPF withdrawals is advised not to seek any assistance from a third party but to deal directly with the EPF, which does not charge for its services. The process of making EPF withdrawals is easy provided that all conditions are met such as the submission of relevant genuine documents.

 

“Members are urged to give their support in our fight against fraudulent withdrawals. Anyone who wishes to report any instances of fraud can do so by calling EPF Fraud Hotline at 03-2616 2121 during working hours from Monday to Friday,” said Nik Affendi.

 

About the Employees Provident Fund (EPF)

The Employees Provident Fund (EPF) is Malaysia’s premier retirement savings fund to help its members achieve adequate savings for a comfortable retirement. This is in line with EPF’s vision to help members achieve a better future and the mission to safeguard members’ savings and deliver excellent services. The EPF has evolved significantly from transaction-centric to a professional fund management organisation with a strong focus on retirement security. The EPF is guided by a robust and professional governance framework when making investment decisions. It continues to play a catalytic role in the nation’s economic growth and seeks to cultivate a savings and investment culture among its members to improve the country’s financial literacy level.