Scam victims targeted again by fake “anti-scam” law firms promising unrealistic recoveries in Malaysia

MALAYSIA: Malaysians who have already suffered financial losses to scams are now facing a new and troubling threat — being cheated again by fake “anti-scam” legal firms that claim they can recover most, if not all, of the money lost.

According to Malaysian media reports, these self-styled firms aggressively market themselves online, exploiting victims’ desperation and trust in the legal profession.

The issue was highlighted by MCA Public Services and Complaints Department head Michael Chong, who warned that scam victims are being deliberately targeted again after their initial losses.

Speaking at a press conference on Monday (15 December), Chong described the phenomenon bluntly as “scammers scamming scam victims”.

“These people have already lost everything. Their savings are gone, their lives are disrupted, and in that vulnerable state, they are easy prey,” he said.

Unrealistic Promises and Polished Deception

According to Chong, the fake firms often promise extraordinarily high recovery rates — sometimes claiming they can retrieve 90 to 95 per cent of stolen funds.

Legal experts say such claims are not only misleading, but impossible in most scam cases.

“These firms rely on slick websites, professional-sounding names and bold guarantees to appear legitimate,” Chong explained.

“But the reality is that no genuine lawyer can promise such results.”

Based on his experience handling scam-related complaints, Chong said the actual recovery rate in most cases is effectively zero. “So how can anyone honestly claim a 90 or 95 per cent success rate?” he asked.

He also warned that some victims, driven by desperation, even resort to borrowing from illegal moneylenders in hopes of recovering their losses — only to fall deeper into debt and distress.

Victims Losing Even More Money

Chong cited two alarming cases reported to his department. In one, a woman who initially lost RM1,500 (approximately US$366) to a scam later lost an additional RM1.2 million (approximately US$293,505) after engaging a firm that promised to recover her money. 

In another case, a man who had already lost RM390,000 paid a further RM33,000 to a so-called recovery firm, only to realise he had been deceived again.

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

He stressed that legal advertising in Malaysia is tightly regulated, and any claims of guaranteed or exceptionally high recovery rates should immediately raise red flags.

Shafee added that some of the advertisements appear to be deliberately targeted at the Chinese community, exploiting cultural expectations around “success rates” to lure victims.

“This is a classic hooking method,” he said.

“They excite you with an attractive story, and once you’re deeply involved, they wipe you out completely.”

Ongoing Scam Cases Remain a Serious Concern

Despite repeated warnings, some of these fraudulent advertisements remain active on Facebook, highlighting the ongoing challenge of combating this evolving form of scam.

Authorities have also warned that many scam cases in Malaysia are still ongoing and remain unresolved, with new reports continuing to emerge.

The lengthy investigation process has left victims vulnerable to further exploitation, which scammers take advantage of by offering false promises of fund recovery through fake “legal” services.