Malaysian "Ghost City" used for scam centre

It certainly looks idyllic - a gigantic $100 billion development in Malaysia, four times the size of Monaco, and built to accomodate 700,000 people. Built in 2016, Forest City was built by Chinese developers and was aimed towards wealthy Chinese customers who may have an interest in moving some of their income outside of the country.

However, three years after opening, takeup was very slow with just 500 residents, only rising to 9,000 by 2023, as things got even slower due to the Covid 19 pandemic closing borders and bringing the world to a grinding halt. The development priced out the average Malaysian, but foreign buyers have been keeping their distance.

Enter the scammers.

In July 2026, police in Malaysia uncovered two major scam centres operating out of Forest City, occupying 32 premises including 27 apartments across five storeys of a residential tower, as well as five bungalows. 335 arrests were made and assets totalling around £181,000 were seized - mostly computers, mobile phones and laptops. Of those arrested, 309 were Chinese nationals - only four were from Malaysia. Forest City had been infiltrated, with operations working in a largely empty residential area where they slipped under the radar. Plus, with the developers aiming their homes to Chinese people, it stands to reason that seeing an influx of Chinese faces would not seem out of the ordinary.

Investigations continue, as whoever was responsible has not yet been caught. Police in the country say they will work with Interpol to find out who was in charge.

It's believed that the call centres scammed victims in China, Indonesia, Japan, the United States, and Europe. In the case of the bungalows, each house was used to target victims in a specific country, with the cons involving investments, cryptocurrency and impersonating law firms - in this instance, it seems that the criminals were targeting people flush with money to invest it under false pretenses, though reports claim they are also involved in romance fraud.

We at The Scam Hound have been looking into scam compounds working out of South East Asia. This one is a little different in that instead of building a site from the ground, this scam centre cuckooed itself in a ghost city - and while this is the biggest, there are many dotted throughout China, which may run the risk of being used for similar circumstances.

While it's useful to know about the scams, it is also useful to be aware of how the people behind the scams operate, as well as how huge an industry it is.