Are you aware that seeking help from recovery agents after falling victim to a scam might actually lead to further financial losses? It's a shocking revelation that could leave you reeling, especially when you're already reeling from the initial scam. But here's where it gets controversial: the effectiveness of recovery agents in Malaysia is questionable, with success rates often falling below 20%.
V. Kokila Vaani, deputy chairman of the Malaysian Bar's ad hoc Parliament liaison committee, warns that appointing recovery agents can trap desperate victims in a second scam, resulting in additional losses. She explains that scammers swiftly move their ill-gotten gains to foreign bank accounts, through third parties, or convert them into cryptocurrency, making the money trail hard to follow. While courts have awarded partial refunds in some fraud trials, these are often after deducting fake 'returns', and if the perpetrators go bankrupt or disappear, the funds become unrecoverable.
Instead of turning to recovery agents, Vaani advises victims to act quickly by filing police reports and consulting only legitimate lawyers for further advice. She emphasizes that any promises of easy refunds or recovery are often just another trap that may lead to hefty losses. In fact, scams involving rogue lawyers over the past four years have defrauded 167 victims of over RM160 million, with most of the lost funds remaining unrecovered.
Kokila also encourages the public to reach out to the Bar Council directly if they are in doubt or need to verify any legal services offered. She stresses that genuine lawyers never demand upfront payments through unofficial channels or pressure clients to make hasty decisions. Since 2023, the Bar Council has lodged six police reports against individuals who impersonated lawyers and used forged documents to carry out fraudulent dealings.
Criminal lawyer KA Ramu agrees that awareness is key to minimizing the risk of falling victim to scammers who use social media platforms to impersonate lawyers. He suggests that the Communications Ministry and Digital Ministry should be stern with social media platforms and order them to remove such advertisements promptly. With AI and deepfakes, scams could become even harder to detect, especially among older Malaysians who are more vulnerable. While we may not be able to eradicate scams, we can minimize the risk of falling into scam traps.
