Chinese-Led Scam Networks Busted in Malaysia, 335 Arrested

JOHOR, Malaysia – Police in Malaysia’s southern state of Johor have dismantled two online scam syndicates operating in Forest City, Iskandar Puteri, arresting 335 suspects, most of them foreign nationals. The suspects, aged between 20 and 58, were arrested during an operation on July 15, according to Johor Police Chief Datuk Ab Rahman Arshad. Those detained included 309 Chinese nationals, 19 Indonesians, four Myanmar nationals and three Malaysians. Local media reported that 159 of the suspects were expected to face charges on Tuesday. Ab Rahman said the two syndicates were not connected to the digital nomad community Network School, which was ordered to cease operations at Forest City last week after authorities revoked its business licence. Police searched 27 apartment units and five landed houses in Forest City, a large waterfront integrated development project. “The operation successfully dismantled two groups involved in online scams, including fake cryptocurrency investment schemes and romance scams targeting overseas victims, particularly in China and Indonesia,” Ab Rahman said. Authorities seized 313 computers, 1,557 mobile phones, 17 laptops, other equipment and a Mazda CX-8 vehicle. Police believe the two syndicates used different methods to target victims abroad. The first group, involving 279 suspects, was allegedly involved in romance scams and cryptocurrency fraud. The second group, with 56 suspects, allegedly posed as recruitment agents and offered fake cryptocurrency investments. Some suspects were also found without valid travel documents. Police have opened investigations into 23 cases involving fraud and immigration offences. Fourteen cases have been referred to prosecutors, with orders issued to prosecute 194 suspects. Of those, 159 were expected to appear in court on Tuesday, while the remaining 35 were scheduled to face proceedings on Wednesday at the Johor Bahru Magistrates’ Court. The alleged masterminds behind the operations remain at large, and authorities are working to track them down, including through cooperation with Interpol. The arrests come amid growing concerns that international scam networks and online gambling groups are shifting operations to Malaysia and Indonesia following increased pressure on illegal activities in Cambodia, Myanmar and Laos. In May, Malaysia’s police chief Tan Sri Mohd Khalid Ismail said cross-border scam syndicates were exploiting Malaysia’s visa-free policies to operate in the country. His remarks followed a police operation in the Klang Valley on May 6 and 7, when 187 suspects were arrested and assets worth nearly RM58 million (US$14.7 million) were seized.