Indonesian Woman Lured into S$1.3 Million Forex Scam by Friend

An Indonesian woman residing in Singapore has fallen victim to a forex investment scam, resulting in a personal loss of more than S$1.3 million (RM4.28 million). The woman, who wished to remain anonymous, revealed that she was introduced to the fraudulent scheme by a friend, who encouraged her to invest in a forex company in Indonesia with promises of high returns and future business opportunities.

According to the victim, her friend, who claimed to own a forex company in Jakarta, suggested she invest in the company with assurances of future growth. The friend mentioned plans to open another company in Labuan, Malaysia, and offered an enticing opportunity for the victim to join as an introduction broker. Through this role, she would purportedly earn commissions for bringing in new clients. Trusting her friend, the woman began investing in the company in 2020, eventually contributing S$1.3 million and even inviting several friends to join the venture.

Initially, the investment appeared promising, with the woman able to make a few withdrawals based on the profits she earned. However, in April of last year, the situation took a negative turn. She reported that the company began citing various excuses to delay withdrawals, claiming ongoing “compliance and liquidity issues.” By December, she was informed that the Labuan Offshore Financial Services Authority (LFSA) had allegedly placed restrictions on the business, further obstructing her access to funds.

As part of the ongoing delay tactics, the company advised investors to complete a broker-to-broker transfer with a separate firm based in Dubai, allegedly to facilitate withdrawals. Investors were assured that their withdrawals had been approved and would be processed by September of this year. However, despite these promises, the woman and her associates have yet to see any return of their funds. She now believes the company engaged in fraud and a criminal breach of trust, expressing hope that law enforcement will investigate the matter thoroughly.

The case has drawn the attention of the Malaysia International Humanitarian Organisation (MHO), with Secretary-General Datuk Hishamuddin Hashim highlighting the broader scale of the scam. According to Hishamuddin, MHO has received 70 complaints involving victims from Indonesia, Singapore, and Brunei, all allegedly defrauded by the same forex scheme. Cumulatively, these victims are estimated to have lost RM38.08 million.

Hishamuddin has called for authorities to take swift action, urging them to investigate the scheme for fraud, criminal breach of trust, and possible violations under the Anti-Money Laundering Act (AMLA). As the investigation unfolds, it serves as a stark reminder of the risks associated with unregulated investment schemes, particularly those that rely on personal connections and promises of guaranteed returns.