LETTER | The inspector-general of police’s call for tougher laws and penalties including mandatory corporal punishment against scam syndicates, and to urgently overhaul the outdated Computer Crimes Act 1997 require nationwide support.

With scammers increasingly leveraging artificial intelligence and sophisticated digital devices, current legal penalties remain too lenient to deter criminal syndicates effectively.

The MCA Consumer Affairs Bureau aspires that these immediate measures be adopted:

  • Strengthen penalties: Review existing laws and introduce heavier, deterrent sentences, including caning where legally appropriate for serious scam offences.

  • Modernise cyber laws: Update legislation to cover AI-enabled scams, deepfakes, voice cloning and emerging technologies.

  • Strengthen financial safeguards: Improve real-time detection of suspicious transactions, clamp down on mule accounts and enhance rapid freezing and recovery of stolen funds.

  • Mandatory banking accountable frameworks: Require financial institutions to implement stronger authentication protocols and share liability to better safeguard consumer funds.

  • Hold platforms accountable: Require digital platforms to detect and swiftly remove scam advertisements, fake accounts and fraudulent content.

  • Deepen regional cooperation: As scam syndicates are shifting from Myanmar, Cambodia and Laos to Penang, on Malaysia’s very own domicile, transborder security cooperation with Asean and other regional countries, including real-time intelligence sharing, joint investigations and coordinated action against organised crime need to be enhanced.

Police recorded 23,367 online fraud cases involving RM680.3 million in losses in just the first quarter of 2026.

By the five-month mark, losses escalated to RM830 million, with non-existent investment scams accounting for RM361.63 million and telecommunication scams inflicting another RM235.63 million in losses.

These figures reveal that scams are no longer isolated incidents but an organised and increasingly sophisticated criminal industry.

Offenders are exploiting AI, digital devices, social media and cross-border networks faster than our enforcement framework can respond.

Although RM5.16 million was returned to victims through the National Scam Response Centre (NSRC) between January and July 2026, this figure is paltry considering the staggering losses.

As such, stronger enforcement can make a tangible difference.

Writer is the chairperson of MCA Consumer Affairs Bureau.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

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