Police in Malaysia are investigating a crypto scam that allegedly duped a 71-year-old retiree out of RM 525,000 by promising a significant return on investment.

The incident took place in the city of Kuala Terengganu, where scammers approached the victim via online communication after the victim came across the dubious investment opportunity via a Facebook advertisement, local media outlet Malaysiakini reported on Sep. 29.

In recent times, Facebook ads have earned a notorious reputation as a tool that crypto scammers have been seen employing to promote fake crypto investment schemes, or redirect victims towards fake crypto exchanges and fraudulent investment platforms designed to drain their savings.

Often, these ads are seen donning false claims of celebrity endorsements or ties to well-known crypto projects, and are designed to look professional enough to pass as legitimate.

Although the Malaysiakini report did not provide much information regarding how the scam played out, it cited Kuala Terengganu district police chief Azli Noor, who said the victim was promised returns of $500,000 on his investment.

“The victim made seven transactions into the suspect’s account between Aug 20 and 27 using his retirement savings,” Noor said in a statement.

As of press time, no arrests had been made, but police suspect that a syndicate operating behind the scenes orchestrated the scam.

Crypto-related crimes surge in Malaysia

Earlier this year, Malaysian authorities had warned that bad actors were increasingly targeting locals, especially senior citizens.

Bukit Aman Commercial Crime Investigation Department Director Datuk Seri Ramli Mohamed Yoosuf said at the time that scammers would often impersonate trusted entities such as financial regulators, police officers, and banks, to gain victims’ trust and pressure them into transferring large sums of money.

According to Ramli, advancements in technology, including AI-generated voices and deepfake visuals, have made it easier for scammers to stage convincing impersonations and run sophisticated fraud schemes that are difficult to detect until it’s too late.

Beyond investment scams, the country has also witnessed an uptick in illegal crypto mining activities, and authorities have led multiple raids over the past year to dismantle these operations that are often powered by stolen electricity and unlicensed hardware.

Amidst this backdrop, Malaysia remains open to strengthening its crypto economy, and according to earlier reporting, Malaysia’s Securities Commission has issued a consultation paper that seeks to overhaul the country’s digital asset framework to introduce better investor protections and licensing standards.