Penang police have nabbed a 35-year-old man who allegedly extorted money and threatened a Grab driver with death before forcing him to strip for photos.

Northeast district police chief ACP Anuar Omar said the suspect claimed to be a consultant and had committed the crime with the help of two others who are still at large.

"He is wanted in Kuala Lumpur for two cases of theft and extortion and has two prior offences involving cheating in 2012 and 2016," Anuar told reporters when asked to verify the police report lodged by the Grab driver.

"The suspect also had a drug-related crime record in 2016 and admitted being involved in the case. He will be remanded soon,” Anuar added.

According to the police report which has gone viral on social media, the Grab driver suffered a 12-hour ordeal when began after drove the suspect to his requested locations.

The suspect had booked the ride than told the driver to make two detours before asking to be taken to Batu Ferringhi.

The driver said he complied with his requests and had not provoked the suspect.

"However, I was extorted, had my savings account cleared, my mobile phone pawned and I was photographed in the nude by two men claiming to be policemen."

"It happened when at about 2.30pm on Saturday. I had picked up a male passenger from Perak Road who said he wanted to go to Gurney Plaza.

"He asked for two detours, one supposedly to buy nasi kandar for his mother and the second was to Tanjung Pinang, a two-kilometre ride from Gurney Plaza, to his house," said the 34-year-old driver in his report.

"When we arrived in Tanjung Pinang, he asked me to pull up at a roadside car wash where two men came to us, flashing what looked like police identity cards," he added.

The driver said at this point, the men took his car keys, pulled him out, searched his car, took his wallet and two mobile phones.

Gambling den

The two so-called policemen then accused him of being a prostitution syndicate member. He was also accused of pretending to be an immigration officer.

The driver said the men asked him for RM3,000 if he wanted them to set him free. Since he did not have the amount, the men then demanded RM500 instead.

"I did not have the money and asked my friends to help. I had to tell them that I met with an accident and they later banked in RM500 to my account," the driver said.

"After that, the men stripped me and took photos of me," the driver said in his police report.

"Then they ordered me to withdraw all my money at a bank in Northam Road, which was RM300, and they took me to a gambling den in Jalan Anson and used my online banking account to place bets," he added.

"They also took me to a pawn shop in Jalan Jelutong where I was forced to pawn my iPhones 6s for RM630.

"Before they let me go, the three took what remaining money I had and warned me not to lodge a police report or they would hunt me and my family down,” he said.