Scams continue to wreak financial and emotional havoc in Malaysia, with the State of Scam Report 2024 revealing that Malaysians lost a staggering US$12.8 billion to scams over the past year. This loss accounts for 3% of the nation’s GDP, emphasising the urgent need for stronger countermeasures.
The State of Scam Report 2024, conducted by the Global Anti-Scam Alliance (GASA) in
collaboration with Whoscall and ScamAdviser, surveyed 1,202 Malaysians, offering crucial insights into the country’s ongoing struggle with fraud.
Alarmingly, 70% of scam victims failed to report their cases to the authorities, a 5% decrease from the previous year, reflecting growing scepticism about the effectiveness of the reporting process. Among respondents, 32% reported losing money to scams.
The growing threat of AI-driven scams is particularly concerning, as 25% of Malaysians were unsure if artificial intelligence played a role in the scams they experienced. This lack of awareness makes Malaysians vulnerable to more advanced forms of fraud, such as deep-fake videos and voice imitation, which are increasingly difficult to detect.
For many Malaysians, scams have become a daily concern. The report found that 74% of respondents encountered scams at least once a month, with 43% noting a rise in scam attempts over the past year.
Common delivery methods include phone calls, messaging apps, and social media platforms like WhatsApp, Telegram, and Facebook, where scammers are increasingly active. Notably, text and SMS scams surged by 8% compared to 2023.
The emotional toll on victims is significant, with 57% reporting a strong emotional impact due to their experiences. This distress is compounded by financial losses, with the average loss per victim standing at US$2,726. Only 2% of victims managed to recover their funds, a sharp drop from 8% in the previous year.
Commenting on the report, Manwoo Joo, Chief Operating Officer of Gogolook, stressed the importance of proactive fraud prevention in today’s digital landscape. “With advanced anti-fraud apps like Whoscall serving as the first line of defence against scammers, we can greatly reduce the risk of falling victim to fraud.
“Whoscall is working closely with local authorities, including the Royal Malaysia Police (PDRM) and CyberSecurity Malaysia, to strengthen efforts against scammers and enhance public protection. We are also exploring AI-driven features to stay ahead of evolving scam tactics. Our aim is to equip Malaysians with cutting-edge tools to identify and stop scams before they cause harm.”
Whoscall is the only anti-scam app approved by the Royal Malaysia Police (PDRM) and was recently appointed as a strategic partner by CyberSecurity Malaysia and Pos Malaysia. The app recently introduced its latest feature, Auto Web Checker, which provides real-time warnings when users accidentally visit scam websites, helping to prevent personal data leaks and account theft.
Key findings from the report include:
- Speed of Scams: 33% of scams are completed within 24 hours of first contact, with 20% of scams concluding within minutes. This highlights the need for constant vigilance, as scammers are often opportunistic.
- Top Scam Types: Investment scams are the most common, accounting for 23% of scams in Malaysia, followed by identity theft at 21%. Shopping scams rank third at 20%.
- Trust Erosion: 63% of Malaysians reported a decline in trust in online platforms and digital transactions due to scam experiences.
In response to these findings, experts are calling for enhanced public education on recognising and reporting scams, greater transparency in reporting processes, and stronger law enforcement measures. A comprehensive strategy combining technology and community engagement is essential as Malaysia faces this pervasive issue.
Additionally, GASA and Gogolook have announced the first Global Anti-Scam Summit (GASS) in Southeast Asia, set to be held at Suntec Singapore on 21-22 October 2024.
Supported by the Singaporean government, the summit will be the largest gathering of anti-scam stakeholders from various sectors, including experts from GASA, major global companies such as Amazon, Google, Gogolook, Mastercard, and Meta, as well as officials from law enforcement, financial authorities, and non-profit organisations.
Attendees from Australia, New Zealand, Thailand, India, Malaysia, Singapore, Taiwan, Hong Kong, Japan, the Philippines, and beyond, including The Netherlands, United Kingdom, and United States, will focus on the theme “The Network to Defeat a Network”.
The summit aims to foster collaboration and develop strategies to protect consumers from scams. It will also unveil the latest findings from the *Asia Scam Report*, raising public awareness of digital fraud and setting the stage for future policy development and global anti-scam initiatives.
To participate in the Global Anti-Scam Summit Singapore Chapter, visit the official website: https://www.gasa.org/gass-2024-asia. Learn how Whoscall can help prevent scams: https://whoscall.com/ms
We urge all Malaysians to download Whoscall and join the fight against scams to protect our community together.
