Malaysia Scam Losses Hit RM2.97 Billion | Experts Demand Stronger Safeguards

Malaysias online scam losses nearly doubled in 2025, reaching RM2.97 billion, as an economist warned that even highly educated professionals can be deceived by fraudulent investment opportunities and called for banks and digital platforms to take greater responsibility for protecting consumers.

Selangor recorded RM986.79 million in online scam losses last year, more than twice its previous level, according to figures attributed to Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour.

Dr Ida Md Yasin, an associate professor at Putra Business School, said Selangor‘s population and widespread adoption of digital banking could help explain its high reported losses. About 21% of Malaysia’s population lives in the state, while its concentration of financially active consumers and relatively high household incomes may also contribute to the figures. She stressed, however, that further research would be needed to establish the precise causes.

Ida cautioned against assuming that financial knowledge or professional qualifications automatically protect individuals from fraud. Investment scams often exploit the prospect of unusually high returns, encouraging potential victims to believe they have discovered an opportunity unavailable to the wider market.

The consequences extend beyond the money lost by individual victims. According to Ida, proceeds channelled into illegal or unreported activities may also reduce potential government tax revenue, adding another dimension to the economic damage caused by financial crime.

Investment fraud accounted for the largest share of Malaysias online scam losses in 2025, at RM1.46 billion. Telecommunications scams ranked second, with RM802.47 million in reported losses. Kuala Lumpur recorded RM782.86 million in losses, bringing the combined figure for the capital and Selangor to RM1.77 billion.

To strengthen consumer protection, Ida urged banks and digital platforms to introduce additional checks for unusually large or suspicious transfers. She acknowledged that more stringent controls could increase operating costs, particularly if financial institutions needed additional personnel to verify transactions. Bank Negara Malaysia, she said, should help balance these costs against the need to reduce consumer exposure to fraud.