KUALA LUMPUR: Shocking numbers involving millions have reportedly been lost to financial and cyber scams, as revealed recently by the federal police Commercial Crime Investigation Department, triggering serious concerns.
Despite authorities stepping up enforcement and embarking on countless efforts to warn the public about a range of scams that promise unrealistic returns, cases continue to persist, with estimated losses of RM2.5 billion recorded between January and November this year.
Speaking to the New Straits Times about this troubling trend, Shankar Durairaja, a criminologist and senior lecturer at the Enforcement, Leadership, and Management University (ELMU) School of Investigative Sciences, said Malaysia is not the only nation facing this issue; even developed countries are encountering similar, and often more severe, losses due to elusive scams.
"Cybercrime is not like traditional crimes where we can identify suspects from physical evidence or physically pursue them.
"It is more complicated by its nature because the crime is committed using computer technology in cyberspace.
"Computer technology is constantly evolving and is misused by criminals to develop their modus operandi," Shankar said.
He said scam crimes are often committed using certain technologies in cyberspace, making it harder for authorities to discover the identities and locations of the perpetrators.
Some of these transactions may involve cryptocurrencies, which can lead to untraceable transactions and complicated investigations, he said.
He said most scams operate as organised crime and have multi-layered networks where middlemen and 'cyber slaves' carry out these tasks without knowing the identities and locations of their bosses.
Shankar noted that cybercrime today is a transnational crime involving multiple countries, leading to legal and logistical challenges.
"Effective international cooperation is needed to gather intelligence on the crime and its masterminds, conduct surveillance, investigations, or combined operations to apprehend these masterminds, sometimes requiring years of police work.
"There have been a few successful cases in Malaysia where police have managed to apprehend the masterminds behind certain scams.
"We must accept that scammers are constantly evolving their methods to stay one step ahead of detection, using new technologies such as AI or modifying old techniques," he said.
Shankar also pointed out that banks can utilise the current mechanisms introduced by Bank Negara Malaysia to halt money transactions at the start of any suspicious transactions.
He acknowledged that the government and law enforcement agencies are doing their best to take all necessary measures to combat commercial crimes through proactive policing skills, especially scams.
"As we can see now, the authorities are transparent and responsive to ongoing scam cases.
"They are using all existing platforms such as Facebook, Instagram, Tiktok, national scam response centre, National Fraud Portal, anti-scam app, Hotline, various official websites and so on to share and receive information on scam cases with the public.
"Apart from that, the government is pumping large sums of money into the MCMC, National Cyber Security Agency (NACSA) and CyberSecurity Malaysia every year to prepare the relevant authorities to combat cybercrime, including scams and other cyber security threats," he said.
In recent years, he said, there have been many crime prevention programmes, including anti scam campaigns featuring influencers and celebrities as ambassadors but the scammers or criminals always get ahead of enforcement with newer scamming methods.
He said in order to be on par with these criminals, authorities must enrich themselves with current technological advances in policing, such as collecting digital evidence, using different software or tools to analyse the digital evidence collected, data mining and the likes.
"One good example is the new Technical Team and Tactical Cyber Unit within the CCID, which is skilled and specialised in preventing the exploitation of technology, particularly in online fraud and financial scams," he said.
Meanwhile, cybersecurity expert from Universiti Sains Malaysia, Cybersecurity Research Centre Director, Associate Professor Dr Selvakumar Manickam, said the speed of scam operations is amplified by advances in technology, high-powered computing, and 5G connectivity, leading to more prevalent AI-driven scams.
"We need a multi-faceted approach, including introducing online safety and scam awareness into school curricula and making international cooperation essential since scams are often cross-border.
"Thus, sharing intelligence and coordinating enforcement efforts can help dismantle global scam networks," he said.
Selvakumar said banks and financial institutions also play a vital role; they can develop systems to detect and alert users about suspicious transactions in real-time, reducing the success rate of scams.
"Scammers can now target millions of individuals with a single click, automate their responses, and exploit platforms like email and social media to expand their reach.
"From phishing emails to fraudulent online marketplaces, the digital age has created an environment ripe for fraud," he said, adding that in the days before the Internet, scams required significantly more effort, as con artists had to rely on snail mail, phone calls, or in-person interactions to execute their schemes.
He said the rise of online scams has become an increasingly familiar aspect of modern life, with the Covid-19 pandemic accelerating this troubling trend after lockdowns and the shift to online shopping, banking, and communication opened new avenues for cybercriminals, leading to a surge in fraudulent activities.
"Social media companies, in particular, have inadvertently become catalysts for scam victimisation.
"If you notice, social media platforms are fertile ground for fraudsters, enabling them to exploit anonymity, rapidly disseminate misinformation, and impersonate trusted entities," he said.
He said weak oversight, inconsistent content moderation, and the prioritisation of user engagement over security have made social media a powerful tool for scammers.
"It is also encouraging to see that the Malaysian government is taking stronger steps to fight scams, including introducing new laws specifically targeting fraud and requiring social media platforms to obtain licenses to operate in the country.
"These initiatives aim to improve accountability, enhance regulatory oversight, and create safer digital spaces for users.
"Such decisive actions send a clear message that combating scams is a national priority and lay the foundation for a more secure digital ecosystem," he said.