On 27 July 2026, news broke of a Terengganu contractor who lost RM152,550 after being duped by a solar street light tender that never existed. It was not the first such case in the state that month — just weeks earlier, another Terengganu electrical contractor lost RM50,400 to a nearly identical scam involving portable power equipment, and traders in Miri lost more than RM28,000 to fake government “door gift” orders using the same playbook.
Different products, same pattern: a convincing quotation, an official-sounding government reference, a request for upfront payment—and then silence once the money moves.
The question every victim asks afterward is the same one:
“Why did I not verify this before I paid?”
How the Fake Tender Scam Works
Based on recent cases reported by police, the pattern typically looks like this:
- A business owner receives an email or message referencing a tender or supply order tied to a government department or agency.
- The offer looks legitimate—official letterhead, a plausible department name, and a real-sounding allocation or project reference.
- The victim is asked to pay a supplier directly, often in more than one instalment, to “secure” the order or supply the goods.
- Once payment is made, the supplier’s communication channels go silent, and the tender turns out to have never existed.
In the RM50,400 Terengganu case, the contractor made two payments — RM40,400 followed by RM10,000 — before discovering, eleven days later, that all contact channels had been blocked.
Why Business Owners Skip Verification
Contractors and small business owners are often targeted precisely because they are used to responding quickly to tender opportunities—speed can mean winning the contract over a competitor. Scammers exploit that same instinct.
Common reasons verification gets skipped:
- The offer references a real-sounding government department or agency.
- The documents and quotations look professionally formatted.
- There is pressure to “secure” the order before a competitor does.
- Many business owners assume a tender referencing a government body must be genuine, without checking directly with that agency.
Police have repeatedly advised the public to verify any tender offer or supplier directly with the relevant agency before transferring any money—advice that, in every recent case, would have stopped the loss before it happened.
What a Vendor Background Check Can Reveal
Before wiring money to a new supplier or accepting an unfamiliar tender offer, a few verification steps make a material difference:
- Company registration verification—confirming the supplier is registered with the Companies Commission of Malaysia (SSM) and that the registration number matches the entity being paid.
- Tender authenticity check—verifying the tender directly with the named government department or agency, not through the contact details provided in the offer itself.
- Bank account verification—cross-checking the receiving account through Malaysia’s Semak Mule portal before transferring funds.
- Adverse media and litigation checks—flagging any prior fraud reports, court judgments, or public warnings tied to the company or its directors.
This is what a vendor background check does in practice: it separates a professional-looking quotation from a verified, accountable business before money leaves your account.
What a Background Check Cannot Do
Verification cannot force a scammer to answer the phone once they already have your money, and it does not replace direct confirmation with the government agency named in the offer. It is most valuable before payment, not after.
That is why the sequence matters: verify the supplier and the tender first, then pay—never the reverse.
A Simple Checklist Before You Pay a New Supplier
- Verify the company’s SSM registration number independently, not via a link or number in the offer.
- Call the government department named in the tender directly, using contact details from its official website.
- Check the receiving bank account through Semak Mule before any transfer.
- Be cautious of any tender requesting payment in multiple installments before delivery.
- Slow down when there is pressure to pay quickly to “secure” the deal.
- If defrauded, report it immediately to the police and the National Scam Response Centre at 997.
Why This Pattern Keeps Repeating Across Malaysia
The fake tender scam sits alongside a broader trend: syndicates placing maids who abscond after a few days, rental scams that surged more than 400% between 2023 and 2025, and job scams that cost Malaysians RM31.8 million in the first quarter of 2026 alone. In every case, the loss happened because trust was extended before verification—not because the victims were careless, but because the scam was designed to look routine.
How Verity Intelligence Helps
Verity Intelligence helps Malaysian businesses verify suppliers, vendors, and business partners before payments are made or contracts are signed.
Through VERISafe, Verity Individual Checks, and Verity BGC, businesses can screen the companies and individuals they are about to transact with.
VERISafe supports instant screening against risk databases, including court records, sanctions and watchlists, and adverse media.
Verity Individual Checks supports smaller businesses and sole proprietors who need a quick, one-off check before engaging a new supplier.
Verity BGC supports more comprehensive due diligence for businesses, including company registration verification, litigation checks, and director background checks—exactly the kind of verification that could have stopped a fake tender before the first payment was made.
Conclusion: Verify the Tender Before You Wire the Money
The contractors who lost RM152,550 and RM50,400 were not careless. They responded to what looked like a legitimate business opportunity, the way any contractor would.
A vendor background check will not recover money already sent to a scammer. Done before payment, it can stop the money from leaving in the first place.
Trust is important, but trust should be supported by verification.
FAQ
What is the fake tender scam happening in Malaysia?
It is a scam where fraudsters send business owners a convincing tender or supply offer, often referencing a government department, and request upfront payment before disappearing once the money is transferred.
How can I verify a tender offer before paying?
Contact the government department or agency named in the offer directly using their official published contact details, not the contact information provided in the offer itself, and verify the supplier’s SSM registration independently.
What is a vendor background check?
It is a verification process that checks a supplier’s company registration, litigation history, adverse media, and bank account legitimacy before a business engages or pays them.
Can a background check guarantee I won’t be scammed?
No. It reduces risk by verifying legitimacy before payment, but it cannot recover funds already transferred to a fraudulent account. Verification needs to happen before money moves.
Who should use vendor background checks in Malaysia?
Any business engaging a new supplier, contractor, or tender—from sole proprietors and SMEs to larger companies with recurring procurement needs.
