SHAH ALAM - Malaysia’s working-age population aged 31 to 50 has become the primary target of increasingly sophisticated investment scams, with experts warning that emotional decision-making, financial pressure and artificial intelligence (AI)-driven fraud tools are driving record losses.
Authorities recorded RM1.47 billion in losses in 2025 alone, highlighting how non-existent investment schemes continue to exploit trust, urgency and digital behaviour across social media platforms.
Cybersecurity expert with the International Islamic University Malaysia Emeritus Professor Datuk Dr Mohamed Ridza Wahiddin said the 31 to 50 age group is disproportionately exposed due to a combination of income stability, digital activity and behavioural tendencies.
“Malaysia’s 31–50 age group is a key target for scammers due to their earning power, active digital habits and relatively quick decision-making, combined with trust in online information.
“Many victims in this segment are already financially committed, have savings, income, loans and family commitments, making high-return investment schemes especially appealing,” he told Sinar Daily.
He said scammers exploit not only technical vulnerabilities but also psychological pressure.
He said the risk is shaped by routine online behaviour, social influence, time pressure and emotionally driven decisions.
“Overconfidence further worsens vulnerability as individuals assume they can identify fraud despite being influenced by referrals and group messaging,” he added.
Novem CS chief executive officer and cybersecurity expert Adjunct Professor Murugason R. Thangaratnam said investment scams targeting this group often rely on prolonged deception and psychological reinforcement.
He said individuals aged 31 to 50 are vulnerable due to accumulated savings, stable incomes and growing financial responsibilities such as education costs and retirement planning.
“Cybercrime data reflects this trend, with 1,099 cases recorded among those aged 31 to 40 and 953 cases among those aged 41 to 50 out of 4,435 total investment fraud incidents.
“Victims are often drawn in by slightly above-market returns through fake platforms that claim to trade in stocks, forex or commodities.
“Scammers often construct elaborate deception systems. These scams are typically long-con schemes, where victims are shown fabricated profits through fake dashboards that simulate consistent returns,” he said when contacted.
Murugason said in some cases, victims invest substantial amounts, sometimes reaching up to RM2 million, before realising they have been defrauded, often only after their withdrawal attempts are blocked.
He also explained that these fraud networks strengthen their credibility by using fake endorsements, manipulated images of celebrities, phishing emails and fraudulent websites designed to closely resemble legitimate financial institutions.
“Modern scams are increasingly powered by AI, including deepfakes and hyper-personalised targeting. Scammers impersonate authority figures to create urgency, including police officers, bank officials or even family members, often pressuring victims into sharing OTPs or transferring funds.
“Phishing messages mimic trusted organisations via WhatsApp or SMS, while QR code scams are rising rapidly, redirecting payments to fraudulent accounts.
“Social media platforms such as Facebook and Instagram remain primary recruitment channels, often used to promote fake investment schemes or job offers. In some cases, hijacked accounts are used to request money from contacts, increasing credibility,” he added.
Experts observed a shift from traditional fear-based “Macau scams” to more sophisticated, relationship-driven deception models.
Murugason explained that modern scams rely on gradual relationship-building, where scammers engage victims in casual conversations before introducing financial requests.
“These operations are increasingly automated using robo-dialers and bulk messaging tools. AI now enables voice cloning and deepfake videos, which are distributed across messaging platforms to enhance authenticity.
“QR-based phishing alone accounted for 52 per cent of cases in 2026, supported by Malaysia’s 29 million social media users, significantly expanding scam reach,” he added.
Licensed financial planner Rafiq Hidayat Mohd Ramli said investment scams are fundamentally behavioural, not technical failures.
He stated that working adults aged 31 to 50 are vulnerable due to pressure to accelerate wealth accumulation or generate additional income, especially when they feel financially behind.
“Scams exploit emotional drivers, including hope to improve financial situation and the fear of missing out, amplified by social proof, testimonials, profit screenshots and group participation.
“Authority bias further reinforces deception when scammers present themselves as credible professionals,” he said.
Rafiq outlined key warning signs, including promises of high and guaranteed returns, pressure to commit quickly and unclear or unregulated investment structures.
He also stressed that difficulty withdrawing funds or requests for additional payments are strong indicators of fraud.
Licensed financial planner Adli Ishak said the 31–50 age group is at a critical financial stage where long-term obligations intersect with peak earning capacity.
He explained that this creates a strong sense of urgency, where individuals believe conventional saving methods are too slow, making them susceptible to scams offering quick solutions to achieve passive income or accelerated wealth.
“Scammers deliberately manipulate behaviour through testimonials, social proof and lifestyle imagery, while urgency tactics discourage verification.
“Even experienced investors are vulnerable when hope, urgency and perceived opportunity override rational judgment,” he said.
Across expert views, several recurring red flags were identified:
- Promises of guaranteed high returns.
- Claims of low risk with high profit.
- Pressure to act immediately.
- Secrecy demands.
- Withdrawal restrictions.
Experts also highlighted transactions into personal bank accounts as a major warning signal.
Authorities such as the Securities Commission Malaysia and Bank Negara Malaysia maintain verification tools, but experts highlighted that awareness and usage remain inconsistent.
Ridza stressed that reducing scam impact requires a layered ecosystem involving regulators, banks and digital platforms.
“Institutions must act swiftly to block fraudulent networks while improving detection systems. Financial institutions can further strengthen protections through improved transaction monitoring, detection of mule accounts, timely customer alerts and faster intervention,” he said.
Murugason similarly pointed out that the most effective defence is an ecosystem that reduces scam credibility and makes fraud harder to carry out before losses occur.
National losses and ongoing escalation
Police reported on April 18 that investment scams caused RM1.47 billion in losses in 2025 across 9,603 cases, involving five major scam types including fake companies, Ponzi schemes, romance scams and cryptocurrency fraud.
Bukit Aman Commercial Crime Investigation Department confirmed that victims are primarily recruited through social media before being shifted to messaging platforms where fake investment dashboards are displayed.
Private sector employees form the largest victim group, with working-age Malaysians aged 31 to 50 consistently identified as the most affected demographic.
Authorities warned that losses continue to rise as scam operations become more sophisticated and technology-driven.