Malaysian police dismantle Kuching call centre scam syndicate over fake online gaming ads

SARAWAK, MALAYSIA: Police in Kuching have dismantled a suspected call centre scam syndicate operating from a shophouse, arresting six local individuals believed to be involved in promoting fraudulent online gaming offers.

The suspects, comprising four men and two women aged between 18 and 35, were arrested during a raid at a shophouse along Jalan Tun Jugah on 4 February, according to police.

Kuching District Police Chief ACP Alexson Naga Chabu said the operation was carried out at about 2.13pm by officers from the Commercial Crime Investigation Division of the Kuching District Police Headquarters.

“During the raid, police detained six local individuals, consisting of four men and two women aged between 18 and 35,” he said in a statement issued on 5 February.

Police also seized various items believed to have been used in the scam operation, including computer equipment, mobile phones, SIM cards, and other related electronic devices.

According to ACP Alexson, preliminary investigations indicated that the syndicate functioned as a call centre promoting advertisements for non-existent online games.

He said the group allegedly used an application known as Multi WhatsApp Warmer to disseminate fraudulent content to targeted victims, primarily local residents.

“All the individuals detained are believed to have been working full-time in these fraudulent activities,” he said, adding that investigations were ongoing.

The case is being investigated under Section 420 of the Penal Code, which relates to cheating and dishonestly inducing the delivery of property.

If convicted under Section 420, offenders may face imprisonment, whipping, or a fine, reflecting the seriousness with which authorities view fraud-related offences.

Police are also investigating the case under Section 120B of the Penal Code for criminal conspiracy, which carries a penalty of up to six months’ imprisonment, a fine, or both.

ACP Alexson said all six suspects were brought before the Kuching Magistrate’s Court on 5 February for a remand application.

The court allowed the suspects to be remanded for four days to facilitate further investigations into the alleged scam operation.

He urged members of the public to come forward with any information related to online fraud activities to assist police in curbing such crimes.

“We call on the public to channel any information related to criminal activities to help the police combat online scam operations,” he said.

Malaysia loses US$684.6 million to financial scams in 2025

The arrests come against a backdrop of rising financial fraud losses nationwide.

Malaysia recorded its highest financial scam losses in three years in 2025, with losses amounting to RM2.77 billion, equivalent to about US$684.6 million.

The figures were disclosed by 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.

Officials have described the trend as an escalating criminal threat, driven by increasingly sophisticated tactics and the widespread use of digital platforms to reach potential victims.

Authorities have repeatedly warned the public to exercise caution when encountering online advertisements and offers, particularly those involving quick returns or unverified digital products.

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.