The government is studying a more comprehensive legal framework to better protect cybercrime victims, including introducing a mechanism to help online scam victims recover lost funds and exploring tougher penalties for offenders.
Minister in the Prime Minister’s Department (Law and Institutional Reform) Azalina Othman Said said the Legal Affairs Division (BHEUU) is reviewing legal reforms covering cybercrime, online harms and digital-related offences, while assessing best practices from other jurisdictions.
Speaking after the National Cyber Security Summit (NCSS) 2026 on Tuesday, she said the study will examine measures adopted by countries such as Singapore, including harsher punishments, as well as victim protection frameworks.
Azalina said Malaysia’s current legal framework focuses primarily on prosecuting offenders under the Penal Code and Criminal Procedure Code, with limited emphasis on protecting victims or helping them recover financial losses.
“Many victims lodge police reports but never get their money back. That is one of the issues we want to review,” she said.
The study is also evaluating reimbursement models used in the United Kingdom and Australia, where banks may compensate victims of online scams under certain circumstances.
She said Bank Negara Malaysia has yet to adopt such a mechanism, but it is among the proposals under consideration. No timeline has been set for the completion of the study.
