Malaysia’s scam losses have surged to RM3 billion as artificial intelligence-powered fraud becomes more advanced, with Parliament highlighting growing concerns over deepfake impersonation, cross-border syndicates and whether social media companies should be held accountable for paid scam advertisements.
Muar MP Syed Saddiq Syed Abdul Rahman said scam victims have more than doubled from 34,000 cases to over 66,000, while losses have risen sharply from RM1.2 billion to RM3 billion. He said scams are no longer confined to traditional methods such as love scams, pointing out that AI technology now enables fraudsters to clone voices and video calls that closely resemble family members.
He added that the issue has become increasingly complex due to syndicates operating across borders, including Cambodia and Myanmar, which makes enforcement more difficult and requires stronger international coordination. He also questioned whether Malaysia should pursue civil or criminal action against social media companies that profit from paid advertisements linked to scam operations, especially when warnings have already been issued.
Responding to the question, Deputy Minister of Communications and Multimedia Teo Nie Ching said social media platforms have effectively become facilitators of scams by allowing fraudulent advertisements to circulate widely. She said under the Risk Mitigation Code issued by the Malaysian Communications and Multimedia Commission on June 1, platforms are required to verify advertiser identities and ensure proper authentication through agencies such as the Companies Commission of Malaysia.
She added that fake accounts are often used to exploit public figures’ images to mislead users and stressed that platforms must not prioritise profits over user safety. Teo said enforcement provisions under the framework allow for penalties of up to RM1 million or financial penalties of up to RM10 million for non-compliance.
