M'sia woman loses S$473, engages 'law firm' to recover money, loses another S$378,000

Malaysians who have already fallen victim to scams are now being cheated a second time after turning to fake “anti-scam” law firms that promise unusually high recovery rates, only to be exploited by them further, according to Malaysian media.

These self-styled legal firms, which often advertise heavily online and prey on the public’s trust in the legal profession, claim they can recover as much as 90 to 95 per cent of money lost to scams, a promise experts say is unrealistic and misleading.

Desperate victims fall into trap a second time

The issue was highlighted by MCA Public Services and Complaints Department head Michael Chong, who said scam victims are being deliberately targeted again after losing money the first time.

“This is basically scammers scamming scam victims,” he said, as cited by The Star.

Speaking at a press conference on Monday (Dec. 15), Chong added that his department had received reports of victims who, while seeking help to recover their losses, ended up losing even more money to fake legal firms.

Pointing out that the scammers exploit this vulnerability by presenting themselves as professional recovery specialists, he said:

"All their savings are gone, everything is gone. They have been destroyed, and some victims start borrowing from Ah Long to try to recover their money, which only pushes them into deeper trouble."

According to Chong, these bogus firms often rely on polished websites, professional-sounding names and bold guarantees to appear legitimate.

However, he stressed that no genuine lawyer or law firm could guarantee the recovery of funds lost to scams, especially at such high success rates.

“Based on my experience handling scam cases, our success rate is 0 per cent.

“So how can anyone claim they have a 90 per cent or 95 per cent success rate?"

Losses ran into millions

Chong cited two cases reported to his office.

In one case, a woman who initially lost RM1,500 (S$473) to a scam later lost a further RM1.2 million (S$378,000) after engaging a firm that claimed it could help recover her money.

In another case, a man who had previously lost RM390,000 (S$123,000) to scammers paid an additional RM33,000 (S$10,430) to a supposed recovery firm, only to realise he had been deceived again.

Chong said efforts were ongoing to clamp down on the practice, noting that victims had already lost large sums.

Legal experts warn against such ads

Senior lawyer Tan Sri Muhammad Shafee Abdullah also cautioned the public against falling for such advertisements.

He noted that legal advertising in Malaysia is subject to strict regulations and that claims of exceptionally high recovery rates should immediately raise suspicion.

Shafee added that some of the advertisements appeared to be tailored to target the Chinese community, as reported by the New Straits Times, further suggesting deliberate and calculated deception.

"Chinese clients often ask, 'What is the percentage of success?' Anything above 80 per cent, and they are happy to engage you.

"This is a typical way of hooking the Chinese community. Claims like 95 per cent recovery are no joke; they are meant to excite you.

"In advertising, this is known as the 'hooking method', like fishing. They hook you with an attractive story, and once you are deeply involved, they go after you and wipe you out completely."

Despite these warnings, The Star reported on Tuesday (Dec. 16) that some of the fraudulent advertisements still remain visible on Facebook.

Top images via OrientalDailyNewsMalaysia/Facebook, Guang Ming Daily