The Malaysian government’s proposal to revise laws holding telecommunications companies accountable for online financial scams has garnered strong support from the Royal Malaysia Police (PDRM).
Bukit Aman Commercial Crime Investigation Department (CCID) director Datuk Seri Ramli Mohamed Yoosuf described the initiative as overdue, emphasizing the need for updated measures to combat increasingly sophisticated criminal tactics.
"Law enforcement efforts must remain on par with the evolving criminal landscape," Ramli told the New Straits Times.
In 2024 alone, nearly RM1 billion was lost to scams, with social media and fraudulent investment schemes driving an 80% surge in losses compared to 2023. Ramli highlighted that scammers often exploit vulnerabilities in mobile services, such as the availability of unregistered SIM cards sold for as little as RM15.
The issue has drawn attention at the highest levels of government. On January 10, Prime Minister Datuk Seri Anwar Ibrahim announced that Bank Negara is coordinating efforts to review legislative changes to address the crisis.
Singapore’s proactive measures have been cited as a potential model for Malaysia. On January 7, Singapore introduced laws allowing police to freeze the bank accounts of scam victims as a last resort to prevent further losses. The city-state, which reported 26,587 scam cases in the first half of 2024 amounting to SGD385.6 million (RM1.27 billion) in losses, also enforces strict regulations on SIM card misuse.
Maybank Group CEO Datuk Khairussaleh Ramli echoed the need for stricter controls on SIM card sales and registration in Malaysia.
"If there are laws to hold telecommunications companies responsible, we hope they will look into the sale of SIM cards more closely to ensure they do not fall into the wrong hands," Khairussaleh said, adding that proactive measures are vital to prevent criminals from staying ahead of law enforcement.
Experts and officials agree that decisive action is needed. Ramli emphasized the importance of modernizing legislation to keep up with today’s complex criminal landscape, while Khairussaleh praised Singapore's decisive measures as an effective framework Malaysia could adopt.
As financial scams continue to rise, Malaysia's review of telecommunications regulations may prove critical in safeguarding its citizens and curbing economic losses.
Source: NST