MALACCA, Jan 14 — A businessman and about 50 of his family members and friends incurred losses amounting to RM3.4 million after buying gold via Facebook.

Malacca Commercial Crime Investigation Department chief, Supt Ee Khong Koy, said the 33-year-old man was dealing with a company in September last year which had guaranteed high profits in the purchase and sale of gold.

He said the victims realised they had been deceived when they could not contact the company on January 9.

"In the early stages, the purchasing took place without any hitch and the victim had persuaded family members and friends to purchase gold from the company.

"However, after payments were made, they did not receive the gold that was promised," he said at a press conference at the Malacca police contingent headquarters here today.

Initial police investigations revealed the company ran promotions via Facebook and had many agents nationwide, luring potential victims by offering gold trading packages which promised good returns. — Bernama