Government Plans to Strengthen Laws to Combat Online Scams, Says PM Anwar Ibrahim
Kuala Lumpur, The Gulf Observer: Prime Minister Datuk Seri Anwar Ibrahim has announced plans to tighten laws to protect Malaysians from the increasing threat of online scams, which have resulted in billions of ringgit in losses. As part of these efforts, the government is considering introducing legislation that would hold banks accountable for losses suffered by victims of online scams due to negligence or failure to adhere to regulations.
Anwar’s comments came in response to a supplementary question raised by Datuk Seri Doris Sophia Brodi (GPS-Sri Aman) during the Dewan Rakyat session on Tuesday, December 3. “There are victims who are truly oblivious that they are being scammed, and that is why we need to tighten the laws,” said Anwar. He added that the government hopes to table the draft law in the next parliamentary session in 2024.
The Prime Minister was referring to the upcoming Online Safety Bill, which is aimed at addressing online bullying, fraud, and other cybercrimes. Doris had inquired whether Malaysia would enact specific legislation, such as Singapore’s Scam Bill, to provide greater protection against the growing prevalence of online scams.
Anwar also expressed his concerns over the financial losses caused by various online scams, noting that these crimes have led to RM1.224 billion in losses in Malaysia alone between January and October this year. “Overall, online scams have resulted in RM286.2 billion in losses across ASEAN,” he said. These scams include online fraud, telecommunication scams, e-trading scams, e-financing scams, love scams, and non-existent loans or investment scams.
The Prime Minister highlighted the worrying use of mule accounts in online scams. Despite the success of the SemakMule portal, which helps Malaysians identify scam-related accounts, the figures remain alarming. As of October 31, the portal had flagged 181,628 telephone numbers, 222,092 bank accounts, and 1,395 companies involved in scams.
Launched in January 2019, SemakMule has played a crucial role in preventing scam victims. According to the portal’s report, out of 32 million searches conducted, over 22 million were revealed to be scam calls. This has helped protect individuals from transferring money to mule accounts.
Anwar also pointed to other preventive measures, such as the blocking of 1.4 billion suspicious phone calls and 1.2 billion unsolicited SMS messages. The Ministry of Communications and the Malaysian Communications and Multimedia Commission (MCMC) have also terminated 118,184 phone lines and blocked access to 9,474 fake websites.
Regarding the suggestion by Nurul Amin Hamid (PN-Padang Terap) to make banks liable for losses incurred by victims of online scams, Anwar expressed his agreement in principle. Amin had proposed a system similar to the UK’s mandatory reimbursement policy, where victims of scams are reimbursed within five days if the bank is found to be negligent. Anwar indicated that Malaysia is considering such a policy, contingent on the findings of a study currently being conducted by the Treasury’s secretary-general.
Anwar concluded that the issue of online scams is not only a concern for Malaysia but is also being addressed across ASEAN, reflecting the region’s commitment to combating this growing problem.
