PETALING JAYA: Police have cautioned the public against dabbling in gold investments on paper.

Commercial Crime Investigations Department director Comm Datuk Syed Ismail Syed Azizan said many people had been fooled by such fly-by-night operators and companies.

“Last year, we received 19 reports from investors who had suffered losses amounting to RM1.05mil.

“So far, this year we received 16 complaints for losses amounting to RM2.59mil,” he said in response to Bank Negara‘s move to expose 77 companies for unauthorised gold investment, foreign exchange trading and other unlicensed activities.

Comm Syed Ismail said that in many cases the operators encouraged the investors to leave the gold with them for greater returns.

“This is especially risky as it provides opportunities for fly-by-night operators. Some also use the Ponzi scheme,” he said.

He added that the 35 cases of fraudulent gold investments were investigated under Section 420 of the Penal Code.

Comm Syed Ismail said similar dubious schemes were also used for investments in other sectors, including plantations and animal husbandry.

“We have set up a taskforce with the relevant agencies to monitor such activities,” he said.