NEW TRAP ALERT: Fake Legal Firms Are Preying on Scam Victims in Malaysia

Malaysia is facing a dangerous new wave of online fraud that targets people who have already been scammed. Criminals are now disguising themselves as legal professionals, offering false hope to victims by promising to recover stolen funds. For many, this second deception proves even more devastating than the first.

Authorities have warned that scammers are increasingly misusing the image of the legal profession to appear credible. Through online advertisements, these fake firms claim they can recover up to 90 or 95 per cent of losses linked to online scams. Such promises are not only unrealistic but designed to exploit victims at their most vulnerable moment.

The MCA Public Services and Complaints Department has flagged this trend as a growing concern. Its head, Datuk Seri Michael Chong, has reported that despite handling numerous scam cases, there has been no successful recovery through these advertised “legal services”. Yet the advertisements continue to spread, creating a false sense of certainty for victims desperate to undo financial damage.

The risks are severe. Many victims have already lost their savings and are emotionally exhausted. In some cases, they are driven to borrow from illegal moneylenders in a last attempt to reclaim their losses, only to fall into deeper financial and legal trouble. Authorities have confirmed multiple cases involving fraudulent recovery schemes, with more believed to be unreported.

The financial damage can escalate rapidly. One woman, who initially lost RM1,500 to an online scam, ended up losing RM1.2 million after engaging with a fake legal firm. In another case, a man who had already been scammed of RM390,000 lost an additional RM33,000 after responding to a similar advertisement.

Senior lawyer Tan Sri Muhammad Shafee Abdullah has also raised the alarm, noting that many of these scams appear to target the Chinese community. He observed that exaggerated success rates are often used to attract clients, as claims of high recovery percentages can strongly influence decision-making. Promises of 95 per cent recovery are particularly effective in creating excitement and trust, despite having no legal basis.

These scams follow a calculated pattern. Attractive claims draw victims in, credibility is built over time, and once confidence is secured, further payments are demanded. By the time victims realise the truth, their finances are often irreparably damaged.

The fake firms frequently operate under impressive names such as “Cross Border Law”, implying international reach and expertise. However, closer examination reveals inconsistencies. Despite claiming to be global, their advertisements refer to the Malaysian ringgit, strongly indicating a local operation aimed at Malaysians. These entities often change names, but investigations suggest they are controlled by the same groups.

As online fraud grows more sophisticated, authorities stress that vigilance is critical. Victims must question extraordinary claims, verify credentials, and recognise that guaranteed recoveries are a clear warning sign.