Scams continue to wreak financial and emotional havoc across Malaysia, with the recent State of Scam Report 2024 revealing staggering losses of RM54.02 billion (US$12.8 billion) over the past year. This figure, equivalent to 3% of the nation’s GDP, underscores the pressing need for stronger countermeasures against fraud.
The State of Scam Report 2024, conducted by the Global Anti-Scam Alliance (GASA) in collaboration with Whoscall and ScamAdviser, surveyed 1,202 Malaysians, providing key insights into the country’s fight against scams. Despite the heavy financial toll, 70% of scam victims did not report their cases to the authorities, marking a 5% drop from the previous year, highlighting growing scepticism towards the reporting process. Among those surveyed, 32% had experienced financial loss due to scams.
“The long-term implications of these scams are alarming,” said Manwoo Joo, Chief Operating Officer of Gogolook. “Proactive fraud prevention is critical in today’s digital age. Whoscall is collaborating with local government bodies such as the Royal Malaysia Police (PDRM) and CyberSecurity Malaysia to enhance protection against scammers. We are also exploring advanced technologies, including AI-driven solutions, to stay ahead of emerging threats.”
A particularly concerning trend is the rise of AI-powered scams. According to the report, 25% of Malaysians expressed uncertainty over whether artificial intelligence was involved in the scams they encountered. AI-driven technologies such as deepfake videos and voice imitation have made scams more sophisticated and harder to detect.
The report also revealed that scams have become a frequent concern for many Malaysians, with 74% of respondents encountering scams at least once a month. Additionally, 43% noted an increase in scam attempts over the past year, primarily through phone calls, instant messaging platforms like WhatsApp and Telegram, and social media sites like Facebook. SMS and text scams have surged by 8% compared to 2023.
The emotional toll on victims is profound, with 57% reporting a significant emotional impact due to their experiences. Financially, the average loss per victim stands at USD2,726, and only 2% managed to recover their funds, a sharp decline from the previous year’s 8%.
Highlighting the speed of scams, the report stated that 33% are completed within 24 hours of initial contact, while 20% are over within minutes. Investment scams remain the most common in Malaysia, accounting for 23%, followed by identity theft at 21% and shopping scams at 20%.
Trust in online platforms and digital transactions has also eroded, with 63% of Malaysians reporting decreased confidence as a result of these scams.
In response, GASA and Gogolook announced the upcoming Global Anti-Scam Summit (GASS), scheduled to take place in Singapore on 21-22 October 2024. Supported by the Singapore government, the summit will feature stakeholders from around the world, including representatives from major companies like Amazon, Google, Mastercard, and Meta. The summit aims to foster collaboration and develop strategies to protect consumers from scams. It will also reveal the latest findings from the Asia Scam Report, providing a deeper understanding of the digital scam landscape across the region.
Experts emphasise the importance of public education, improved transparency in reporting processes, and stronger law enforcement efforts as Malaysia grapples with the growing threat of scams.
