MALAYSIA lost RM2.77 bil to online scams in 2025, equivalent to about RM7.6 mil a day, as cybercriminals continue to exploit the country’s growing reliance on digital financial services, according to a new Khazanah Research Institute (KRI) discussion paper.
The paper, Hook, Line and Sinker: Cyber Financial Scams in Malaysia, argues that scam prevention efforts remain heavily focused on responding after money has been stolen, while too much responsibility continues to be placed on individual consumers.
Beyond financial losses, the authors warn that scam victims often face lasting emotional and psychological consequences that can affect families and communities if left unaddressed.
Drawing on desk research and stakeholder discussions during a roundtable session, the paper introduces a “Scam Anatomy” framework that maps how cyber financial scams typically unfold.
The framework identifies seven stages in a scam’s lifecycle, from the initial operational setup and first contact with victims to the final cash-out phase when stolen funds are extracted.
Using this model, the authors examined Malaysia’s existing regulatory and non-regulatory measures and found that while numerous laws and initiatives already exist, many gaps remain in governing emerging technologies.
Although the government has moved quickly to address some of these challenges, current interventions tend to concentrate on mitigating losses rather than preventing scams earlier in the process.
To strengthen Malaysia’s anti-scam ecosystem, the paper argues that responsibility should be shared more evenly among financial institutions, telecommunications companies and digital platform providers instead of falling primarily on consumers.
It also calls for greater use of technology to match the speed and scale of scam operations.
Proposed measures include AI-powered tools to detect scam advertisements, better integration with the Online Safety Act to speed up content takedowns, and a dedicated scam prevention app that combines official databases into a single verification and guidance platform for consumers.
The authors further recommend creating a public-facing dashboard that provides timely and consistent scam data across agencies. Such a platform could improve transparency, reduce discrepancies in reporting and help raise public vigilance.
Public education campaigns should also evolve beyond teaching people how to identify scams.
The paper recommends more engaging and evidence-based approaches, including simulation exercises and scam-awareness sandboxes, to help Malaysians build greater resilience against increasingly sophisticated fraud tactics.
Looking ahead, the authors urge policymakers to close legal gaps involving emerging technologies, adopt more preventive legislation, strengthen law enforcement capacity and invest in developing cybersecurity talent to keep pace with rapidly evolving cyber threats. ‒ Aug 28, 2026
Main image: The Daily Guardian
