Malaysia loses US$684.6 million to financial scams in 2025, highest in three years

KUALA LUMPUR, MALAYSIA: Malaysia recorded its highest financial scam losses in three years in 2025, with RM2.77 billion, equivalent to US$684.6 million, lost in a single year, according to the Home Ministry in a written parliamentary reply dated 21 January 2026.

The sharp increase pushed cumulative losses from online and financial fraud between 2023 and 2025 to RM5.62 billion, highlighting what officials described as an escalating and increasingly sophisticated criminal threat.

According to the Home Ministry, losses stood at RM1.28 billion in 2023 before rising to RM1.57 billion in 2024, followed by a further spike in 2025 that marked the highest annual total over the three-year period.

The ministry told Parliament that scams involving phone calls, romance schemes, e-commerce fraud, bogus financing offers and non-existent loans or investment opportunities continued to account for the bulk of reported cases.

It said these scam typologies remain prevalent due to their adaptability and the growing use of digital platforms, which allow syndicates to reach victims quickly and operate across borders.

Malaysia government reviewing heavier penalties on scam-related offences

In response, the authorities said enforcement efforts are being intensified under existing legislation, particularly Sections 424A to 424D of the Penal Code, which provide for heavier penalties reflecting the seriousness of scam-related offences.

According to the ministry, these provisions are intended to deter organised scam operations by increasing sentencing severity and allowing law enforcement agencies greater scope in investigations and prosecutions.

“Strategic cooperation is also being carried out between the police, financial institutions, telecommunications companies and both domestic and international enforcement agencies,” the ministry said in its reply.

The collaboration focuses on information-sharing, technical assistance and coordinated action aimed at improving prevention measures, enhancing tracing capabilities and strengthening investigations against organised scam networks.

Officials said such cooperation is essential as scam syndicates increasingly exploit digital payment systems, telecommunications infrastructure and mule accounts to move illicit proceeds rapidly and obscure financial trails.

In addition to current enforcement measures, the government is examining possible amendments to several key laws, including the Penal Code, the Communications and Multimedia Act and legislation linked to anti-money laundering.

The ministry said these potential changes would widen enforcement powers, enabling tougher penalties and broader asset seizure measures against those involved in online scams.

“This allows penalties and seizures to be further carried out against online scams. It will also encompass action against mule account holders or agents and quarters involved in online scams,” the ministry said.

The parliamentary response was issued to Julau MP Datuk Larry Sng, who had requested a detailed breakdown of financial scam losses over the past three years.

He had also sought clarification on the government’s strategy to address what he described as a fast-growing problem affecting individuals, families and businesses nationwide.

The ministry’s figures underline growing concerns about the social and economic impact of financial scams, particularly as losses continue to rise despite ongoing public awareness campaigns and enforcement efforts.

Authorities said further updates on legislative amendments and enforcement outcomes would be provided as measures progress through the relevant legal and parliamentary processes.