BSN Employee Involved in Investment Fraud: Bank to Begin Compensating Victims Next Week

Bank Simpanan Nasional (BSN) is expected to begin compensating some victims of an investment scam perpetrated by its employee starting next week, according to Sarawak Democratic Action Party (DAP) chairman Chong Chieng Jen.

In late November, a fictitious investment scheme created by a BSN employee was exposed, prompting multiple victims to file reports at local police stations.

The employee allegedly fabricated a financial product named "BSN Takaful Makmur," falsely claiming to assist clients in reinvesting funds to achieve "compound interest." It is reported that the employee not only forged promotional materials and bank receipts but also instructed clients to count cash at the bank branch counter.

A lot of victims mistakenly believed BSN Takaful Makmur was a legitimate product offered by BSN. Over 70 victims lost more than RM11 million.

Upon learning of the situation, BSN immediately suspended the employee and is cooperating with police investigations.

Hong, a recent victim, reportedly invested RM300,000 in an investment product recommended by the BSN employee in 2024. He only realized he had been defrauded earlier this year after reading related media reports.

When Hong visited the bank to inquire about his investment, he was informed that there was no record of his participation in any funds.

The suspect is facing two charges.

BrokersView reminds you

Investors should exercise extreme caution regarding investment schemes promising lucrative returns in a short period. Such unrealistic promises often come with significant fraud risks.

To avoid financial losses, investors must invest with caution and steer clear of unregulated brokers.