On the SC Investor Alert List, some entries carry the label "potential clone entity". The SC explains that some entities on the list may impersonate legitimate entities, and these are described as "potential clone". In plain terms, someone may be using the name of a real company to win your trust.
What is a clone firm?
The SC describes clone firms as companies that impersonate a legitimate entity. In media releases from 2020, the SC said these firms copy the names, logos, corporate credentials and websites of licensed capital market intermediaries and of public listed companies.
The SC said such schemes were promoted on social media and messaging apps such as Facebook, WhatsApp and Twitter, often with promises of very high returns in a short time and with little or no risk.
Victims were asked to pay money into personal bank accounts. Some were later asked for more payments, described as income tax, administrative fees, bank charges or withdrawal fees.
Why a real company's name can appear on a warning
A "potential clone entity" entry does not mean the genuine licensed company is on the alert list for its own conduct. The warning is about the party copying it. That is why a familiar or respected name is not proof that an offer is real.
In June 2025, the SC warned that a fake website was copying its own Public Register of licence holders and registered persons. Searches on the fake site showed false "licensed" results with made-up licence details. Even an official-looking check can be copied.
How to protect yourself
Go to the SC website directly by typing www.sc.com.my yourself. Do not use links sent by strangers or posted in chat groups.
Check the firm on the SC's official Public Register of licensed and registered persons, or use sc.com.my/investment-checker. Also check the SC Investor Alert List at sc.com.my/investor-empowerment/investor-alert-list.
Compare the contact details. If the website address, phone number or bank account you were given does not match what the licensed firm publishes, treat that as a warning sign.
Never transfer money for an investment into a personal bank account. The SC has also pointed investors to the police's Semak Mule service to check bank account and phone numbers linked to reported cases.
If in doubt, call the SC's Consumer & Investor Office on 03-6204 8999.
SmartChecker shows register records and reviews for the companies it lists, but the SC's own website is the official source.
Common questions
Does a clone warning mean the real company did something wrong? No. The SC uses the label for parties that may be impersonating a legitimate entity. The warning is about the impersonator.
Is the Investor Alert List complete? No. The SC says the list is not exhaustive and is based on the information available to it at the time of publication.
Am I protected if I deal with a clone firm? The SC says that if you invest through unauthorised entities and individuals, you will not be protected under Malaysian securities laws.
How do I report a suspicious offer? Contact the SC's Consumer & Investor Office on 03-6204 8999. You can also find its other contact details at sc.com.my.