Woman loses $380,000 after hiring 'anti-scam law firm' to help recover $380 from scammers

A Malaysian scam victim ended up being cheated a second time of even more money, after entrusting an 'anti-scam law firm' to recover the scammed sum of RM1,200 (S$379). 

Her losses the second time around to scammers amounted to $1.2 million ringgit (S$379,200) — 1,000 times over the initial amount lost. 

This example was shared by the Malaysian Chinese Association (MCA) Public Services and Complaints Department head Michael Chong, during a press conference held at the political party's headquarters in Kuala Lumpur on Monday (Dec 15). 

The case, which happened last year, was the first such incident recorded by the department, said Chong, who warned Malaysians of the new form of fraud. 

They involve such self-styled law firms which promise scam victims recovery of their monies, only to exploit them again. 

These entities promise success rates of over 90 per cent, which Chong cited to be implausible and misleading. 

"Based on my experience handling scam cases, our success rate is zero per cent. 

"So how can anyone claim they have a 90 per cent or 95 per cent success rate?" Chong was quoted as saying. 

In a more recent case this year, a man who had lost RM390,000 to a scam ended up losing an additional RM33,000 after engaging what he believed was a legal firm, said Chong. 

Senior lawyer Muhammad Shafee Abdullah also stated at the press conference that most of the scams appeared to target the Chinese community. He shared that based on his experience with Chinese clients, they are more likely to be enticed by scammers' claims about their "success rate". 

"In advertising, this is known as the 'hooking method', like fishing. They hook you with an attractive story, and once you are deeply involved, they go after you and wipe you out completely," New Straits Times quoted him as saying. 

He added that the fraudulent firms come under different names, such as 'Cross Border Law', which gives the impression that they are international. 

Shafee also aired suspicions that scammers are operating from within Malaysia, targeting Malaysians. 

"Look at their advertisements, they use the word 'ringgit'. Why would you use 'ringgit' if you are a cross-border law firm?" 

According to checks by The Star on Monday, some of the social media advertisements highlighted by Chong and Shafee are still visible on Facebook. 

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candicecai@asiaone.com