What is the modus operandi of this specific investment scam?

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The Modus Operandi of the China-Based Stock Investment Scam Involved Deceptive Initial Returns and Third-Party Account Transfers

A private company employee in Miri lost RM238,000 after being defrauded by a scam that purported to offer a China-based stock investment. The scheme's methodology centered on building false trust through initial payouts before encouraging substantial capital injection into a non-existent venture, with funds ultimately being channelled through third-party bank accounts. This tactic led the victim to make ten separate transactions totalling RM238,000.
Initial Returns Fostered False Trust

The scam operated by first providing the victim with returns on his investment. This initial success was a calculated strategy designed to establish credibility and encourage the victim to commit larger sums of money into what was ultimately a fictitious investment scheme. The apparent profitability served as a lure, making the subsequent requests for more capital seem legitimate.
Funds Directed to Third-Party Accounts

Following the establishment of trust through the initial simulated profits, the victim was instructed to make multiple transactions. These payments, amounting to RM238,000 across ten separate instances, were not directed to the purported investment entity but rather to two third-party bank accounts provided by the suspect. This diversion of funds is a common characteristic in such fraudulent operations, obscuring the true beneficiaries.
Realisation of Deception Upon Withdrawal Attempt

The victim only became aware of the fraudulent nature of the investment when he attempted to access or withdraw the alleged profits he had accumulated. The inability to retrieve his funds, both the initial capital and the promised returns, was the critical juncture at which the scam was exposed. This inability to cash out is a hallmark of investment fraud, where the promised liquidity is never realised.

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What is the modus operandi of this specific investment scam?

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