Malaysia Cyber Scam Epidemic: RM573.7 Million Lost in Three Months – Public Urged to Stay Alert

Malaysia Cyber scams have reached alarming levels, with losses hitting RM573.7 million in just the first quarter of 2025 alone, according to the National Scam Response Centre (NSRC). Criminals are now leveraging artificial intelligence (AI) to create highly convincing scams, including deepfake videos, cloned voices, and fake government alerts. Even tech-savvy individuals are falling victim, forcing authorities to issue urgent warnings.

How AI Scams Are Tricking Malaysians

Cybercriminals are no longer relying on crude phishing emails or poorly worded messages. Instead, they are weaponizing AI tools to exploit human psychology and bypass traditional security measures. Here’s how these scams operate:

• Deepfake CEO Fraud: A corporate executive in Kuala Lumpur transferred RM250,000 after receiving a video call from what appeared to be her CEO—The caller’s face, voice, and mannerisms were indistinguishable from the real executive—until the bank flagged the transaction as suspicious. Investigations revealed the video was a deepfake, created using publicly available footage of the CEO from company events and social media.

• AI-Cloned Voice Scams: An elderly man in Johor lost RM10,000 to a scammer who cloned his grandson’s voice, who claimed to be in a car accident and needed emergency funds. The voice, tone, and even background noises (e.g., sirens) were fabricated using AI voice-cloning tools trained on the grandson’s TikTok videos

• Fake Government Threats: Fraudsters are spoofing official hotlines, using AI-generated calls to impersonate authorities. Victims receive threats of arrest, deportation, or fines for “tax evasion” or “illegal activities,” with demands for immediate payment via cryptocurrency or bank transfers.

These scams exploit human psychology, using urgency and fear to pressure victims into acting before verifying the situation.

Shocking Statistics: Malaysia Cyber Scam Crisis

• RM573.7 million lost in Q1 2025 (12,110 cases reported).

• RM53.88 billion lost to investment scams in 2024—equivalent to 3% of Malaysia’s GDP.

• 750 Malaysians rescued from overseas scam syndicates, where victims were often forced into illegal online operations.

• 6,745 scam-linked bank accounts frozen by the NSRC.

Other common scams include:

• QR Code Payment Traps: Fraudsters overlay fake QR codes at parking lots, hawker stalls, and retail stores. Scanning these codes redirects users to phishing sites that steal banking credentials.

• Fake Job Offers: Promises of lucrative overseas jobs (e.g., IT roles in Singapore) lure victims into human trafficking rings.

• Romance Scams: Criminals pose as potential partners on dating apps like Tinder, building trust over months before fabricating crises to extract money.

How to Protect Yourself from AI-Powered Scams

Authorities recommend these critical precautions:

1. Verify Unexpected Requests – If a “family member” or “boss” asks for money, confirm via another communication channel. For government-related calls, visit the nearest agency office or use official websites.

2. Never Share OTPs or Passwords – Banks and government agencies will never ask for these.

3. Check QR Codes Before Scanning – Fraudsters tamper with legitimate codes at parking lots and stores. Look for signs of tampering (e.g., stickers over codes) at payment kiosks. Alternatively, use apps like CheckQR (developed by CyberSecurity Malaysia) to verify legitimacy.

4. Beware of Urgency Tactics – Scammers pressure victims to act fast; always pause and verify.

5. Report Suspicious Activity Immediately – Contact the NSRC hotline at 997 or visit the nearest police station.

Government and Tech Sector Fight Back

The NSRC has deployed AI-powered detection systems to block fraudulent calls in real time. Meanwhile, Malaysia is leading ASEAN-wide efforts to dismantle transnational scam networks. “Scammers are exploiting both technology and psychology,” warns Ts. Lukas J., Chairman of OPERiON E-Commerce & Software Sdn Bhd. “The best defense is skepticism—always double-check before acting on urgent demands.”

Stay Alert and Spread Awareness

With scams becoming increasingly sophisticated, public vigilance is crucial. Share this information with family and friends, especially elderly relatives who are prime targets. For more info, visit https://operion.com.my/category/iot-data-security/ or BNM’s Financial Fraud Guide: https://www.bnm.gov.my/fraud-prevention