Malaysia is facing an unprecedented surge in financial losses from scams, with figures climbing to RM1.57 billion in 2024, up from RM1.22 billion the previous year. This alarming 28.7% increase, as reported by the Commercial Crime Investigation Department, underscores a growing crisis that has left individuals and authorities scrambling for solutions. Coupled with a staggering 82.81% rise in scam calls—reaching 2.98 million in 2024—and a high rate of personal data leaks, the country finds itself at the epicentre of a digital crime wave.

The scale of the problem is laid bare in the 2024 Whoscall Annual Report, released by the caller ID and scam prevention app. Beyond the sheer volume of scam calls, fraudulent SMS messages also spiked by nearly 20%, totalling 5.29 million last year. Perhaps most concerning is the revelation that 72.5% of Malaysians who checked Whoscall’s ID Security feature discovered their personal information had been compromised—the highest rate among eight countries surveyed, including Taiwan and Japan.

“Phone numbers are the most commonly leaked data, affecting 98% of users in Malaysia, but what sets us apart is the high rate of name leaks at 89%, alongside addresses and emails,” said Voon Chang Liew, business development director for Gogolook Malaysia, Whoscall’s parent company. “This makes impersonation scams far more convincing, as fraudsters can pose as banks, government agencies, or delivery services with alarming accuracy.”

A Perfect Storm: AI and Vulnerable Targets

The sophistication of scams has evolved dramatically, with artificial intelligence (AI) playing a central role in deceiving victims. According to Datuk Seri Ramli Mohamed Yoosuf, director of the Commercial Crime Investigation Department, AI-driven scams—such as deepfake videos featuring celebrities or politicians—are becoming increasingly difficult to detect. These tools are often used to lure individuals into fraudulent investments or phishing traps, exploiting trust in familiar faces or authoritative voices.

The elderly, in particular, are prime targets due to their financial savings and, often, limited digital literacy. “These scams are becoming harder to detect, especially for older citizens who may not recognise the signs of a deepfake or a phishing attempt,” Datuk Seri Ramli noted. The emotional and financial toll on victims is profound, with many losing life savings to fraudsters who operate with near impunity across digital platforms.

The rise in personal data leaks exacerbates the problem. With names, addresses, and phone numbers readily available to scammers—often through breaches or illicit online markets—impersonation scams have become chillingly personal. A fraudster armed with a victim’s leaked name and contact details can craft a message or call that feels legitimate, whether posing as a bank official requesting urgent account verification or a government representative demanding payment for a fabricated fine.

Regional Context and Comparative Risks

Malaysia’s 72.5% data leak rate stands out starkly against regional peers. Taiwan, ranking second, reported a 62.4% rate, while Japan followed at 56.7%. While phone numbers were the most commonly compromised data across all surveyed countries, Malaysia’s high incidence of name leaks adds a layer of vulnerability not seen to the same extent elsewhere. This distinction suggests a pressing need for targeted interventions to secure personal information and disrupt the underground trade in leaked data.

The financial impact of scams in Malaysia also reflects a broader regional challenge. Countries like Thailand and the Philippines, also covered in the Whoscall report, have seen rises in scam activity, though specific figures for financial losses were not disclosed. In Malaysia, the RM1.57 billion loss in 2024 equates to roughly £280 million, a sum that highlights the scale of the economic damage and the urgency of addressing this issue at both national and regional levels.

Government and Private Sector Response

In response to the escalating threat, Malaysian authorities are intensifying efforts to combat digital fraud. The police have forged a strategic partnership with Whoscall, sharing verified scam numbers through the app to warn users in real time. “AI-powered solutions are a critical first line of defence,” Datuk Seri Ramli emphasised, pointing to the role of technology in staying ahead of increasingly sophisticated criminals.

Yet, while such partnerships are a step forward, they are not a panacea. The sheer volume of scam calls and messages—nearly 3 million calls and over 5 million SMS in 2024—suggests that reactive measures alone cannot stem the tide. Public awareness campaigns, particularly those targeting vulnerable groups like the elderly, are essential to equip individuals with the knowledge to identify and avoid scams. Simple steps, such as never sharing personal information over unsolicited calls or verifying the identity of a caller through official channels, could prevent countless losses.

On the legislative front, Malaysia has laws such as the Computer Crimes Act 1997, which criminalises unauthorised access to computer systems and data. However, enforcement remains a challenge, especially when scammers operate across borders or exploit anonymising technologies. Strengthening international cooperation to track and dismantle scam networks, alongside tougher penalties for data breaches, could deter would-be fraudsters.

The economic ramifications of Malaysia’s scam epidemic extend beyond individual losses. Businesses, particularly in the financial and telecommunications sectors, face reputational damage when scammers impersonate their brands. Consumer trust erodes, potentially impacting economic activity if individuals grow wary of digital transactions—a concern in a country striving to advance its digital economy.

Socially, the psychological impact on victims cannot be overstated. Losing savings to a scam often brings shame and isolation, with many reluctant to report incidents due to embarrassment or fear of judgment. Community support systems, alongside government-led victim assistance programmes, are vital to help those affected recover financially and emotionally.

Looking Ahead: A Call for Comprehensive Action

As Malaysia grapples with this digital crime wave, a multi-pronged approach is imperative. Technological solutions, such as enhanced AI detection tools and secure data storage systems, must be paired with robust public education initiatives. Schools, community centres, and media outlets could play a role in teaching digital literacy, ensuring that citizens of all ages are equipped to navigate an increasingly complex online landscape.

At the policy level, the government might consider incentivising private companies to bolster cybersecurity, perhaps through tax breaks or grants for firms that implement stringent data protection measures. Additionally, if international partnerships can be expanded—potentially through ASEAN frameworks—Malaysia could lead the charge in creating a regional anti-scam coalition, sharing intelligence and resources to tackle cross-border fraud.

While speculative, such reforms could, if implemented effectively, reduce the incidence of scams and data leaks over time. However, as of now, no concrete evidence confirms the feasibility or timeline of such initiatives, and any impact remains hypothetical. What is clear is that without decisive action, the financial and social costs of scams will continue to mount, leaving Malaysians vulnerable to ever-evolving threats.

The RM1.57 billion loss in 2024 is not just a statistic—it represents countless stories of hardship and loss. As scammers leverage cutting-edge technology like AI to exploit trust, Malaysia stands at a crossroads. The path forward demands innovation, collaboration, and a commitment to protecting the most vulnerable, ensuring that the digital age does not become synonymous with deception.