MALAYSIAN consumers are losing billions of ringgit to scammers every day. According to PDRM statistics, Malaysia recorded 66,204 online fraud cases in 2025, up from 35,368 in 2024, representing an increase of over 87%. Furthermore, financial losses surged from RM1.57 billion in 2024 to RM2.97 billion in 2025, representing an increase of over 89%.
It has also been reported that only 30% of scam victims report these incidents, suggesting that the actual scale of the problem may be significantly under-represented in the reported figures.
The government has introduced various initiatives to combat scams. Bank Negara Malaysia (BNM) has strengthened banking security through enhanced authentication, improved fraud detection systems, banking kill switches and the National Fraud Portal to expedite the identification and freezing of suspicious transactions.
The initiative has yielded positive results. According to BNM, banks successfully blocked approximately RM1.2 billion in fraudulent transactions in 2025, compared to RM399 million in 2024.
PDRM has also stepped up enforcement against scam syndicates and mule accounts. The National Scam Response Centre (NSRC), accessible via the 997 hotline, provides a channel for rapid reporting and intervention.
The police also operate “Semak Mule”, a platform that allows the public to check suspicious bank accounts and telephone numbers. However, recovering stolen funds remains a significant challenge.
The Malaysian Communications and Multimedia Commission has also introduced measures to combat scams involving telecommunications networks and digital communications, working with telecommunications providers to tackle fraudulent communications, suspicious phone numbers and illegal telecommunications activities.
Meanwhile, e-commerce platforms have introduced seller verification, buyer protection and complaint-handling mechanisms. Despite these efforts, PDRM reported that e-commerce fraud cases rose by over 82%, from 7,662 in 2024 to 13,979 in 2025.
The problem is not a lack of initiatives but whether existing measures are effective enough to prevent scams before consumers suffer financial losses.
So why are scam cases and financial losses continuing to rise dramatically?
Scams are often blamed on consumers, leading to an overemphasis on consumer awareness. While consumer empowerment is essential, it is not enough.
Scammers increasingly exploit human psychology and AI to create fear, urgency, trust and emotional pressure, manipulating victims into decisions they may otherwise reject.
As AI blurs the line between real and fake, even educated and financially savvy individuals can fall victim to scams.
Scams are increasingly a systemic protection failure involving weaknesses across financial institutions, telecommunications networks and digital platforms.
A scam may begin with a fraudulent social media advertisement, move to a messaging app, lead to a bank transfer and end with funds rapidly dispersed through multiple mule accounts. Each stage involves systems operated by regulated institutions or commercial platforms.
Yet when scams succeed, consumers bear the greatest financial losses. This imbalance must change.
The Federation of Malaysian Consumers Associations (Fomca) calls on the government to conduct a national audit of existing anti-scam measures to assess their effectiveness and actual outcomes. The findings should be benchmarked against international best practices to identify gaps and strengthen consumer protection.
To empower consumers and create a safer digital ecosystem, Fomca has submitted a policy paper to the government entitled “Memorandum on Scam Prevention Framework: Protecting Malaysians Against Scams”.
Its key recommendation is for the government to adopt a whole-of-society approach to scam prevention, with shared responsibility across all sectors involved in the scam lifecycle.
The five key proposals to strengthen consumer protection, empower consumers and create a safer digital ecosystem are:
Establish a National Scam Prevention Council (NSPC)
The council will coordinate, oversee and monitor the effectiveness of national scam prevention measures, bringing together key regulators, academics and consumer organisations. Given the rapid evolution of scams, particularly with the advent of AI, the council should also establish a National Scam Intelligence System to detect and assess emerging threats before they spread.
Develop a National Scam Prevention Framework (SPF)
As its first priority, the NSPC should develop a comprehensive SPF that establishes consistent, enforceable consumer protection obligations for businesses across key sectors exploited by scammers.
Strengthen accountability across the scam ecosystem
Enhance protections and accountability among key stakeholders throughout the scam lifecycle:
Banks and payment providers
Telecommunications providers
Digital platforms
Establish a National Behavioural Scam Literacy programme
Develop a nationwide programme to strengthen consumers’ ability to recognise and resist scams, focusing on:
understanding the psychology of scams and emotional manipulation;
raising awareness of cybersecurity practices and protective measures; and
improving awareness of available scam prevention, reporting and fund recovery mechanisms.
Establish key performance indicators (KPIs) to measure effectiveness
Introduce clear, measurable KPIs to evaluate the effectiveness of scam prevention, intervention and redress measures. These should include:
reduction in consumer financial losses;
rates of recovery of stolen funds;
response times to scam reports;
time taken to freeze suspicious funds;
time taken to detect and remove scam advertisements;
number of emerging scams detected; and
improvements in consumers’ ability to recognise and resist scams.
A meaningful reduction in scams requires a two-pronged approach: empowering consumers and building a safer digital ecosystem.
These efforts must be supported by benchmarking against international best practices and rigorous, evidence-based evaluation to ensure that measures are effective and deliver tangible results.
Dr Paul Selva Raj
Deputy President
Federation of Malaysian Consumers Associations