KUCHING: The growing number of scam-related losses reported almost daily in Malaysian newspapers highlights an escalating national crisis demanding immediate and decisive legal reform.
From retirees losing life savings to small business owners wiped out overnight, scam cases have become widespread, signalling a systemic failure rather than isolated criminal incidents.
“As a State Legislative assemblyman, I am deeply alarmed by the sheer frequency and scale of scam cases reported, showing our laws are not keeping pace,” said Kota Sentosa assemblyman, Wilfred Yap Sau Sin.
He noted that despite repeated warnings, enforcement actions and public advisories, scam syndicates continued exploiting Malaysians, with financial losses mounting year after year.
“Currently, scammers are mainly prosecuted under Sections 417 and 420 of the Penal Code, provisions originally designed for traditional fraud rather than complex, technology-driven scam operations.
“These laws were never intended to combat organised, cross-border syndicates operating through digital platforms, social media and sophisticated financial networks,” he said.
Authorities also rely on Section 233 of the Communications and Multimedia Act 1998 to act against scam messages sent via SMS, WhatsApp and social media platforms.
However, Yap pointed out that the law focused on improper communication and carried penalties that failed to reflect the severe financial devastation suffered by scam victims.
“The Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 is used to trace scam proceeds, particularly involving mule accounts.
While AMLA was important, Yap said it was largely reactive, with investigations often starting only after funds were transferred, withdrawn or moved overseas.
“This explains why many victims, despite reporting quickly, are later informed that recovery is unlikely because enforcement comes after irreversible financial damage,” he said.
“In contrast, Singapore has adopted a preventive approach through its Protection from Scams Act, disrupting syndicates before losses occur.
“Singapore has also imposed strict penalties on mule account holders, including asset forfeiture and restitution orders, significantly weakening scam networks,” he said.
Yap said Malaysia’s experience showed mule accounts remained a weak link, with inconsistent penalties and insufficient deterrence allowing syndicates to thrive.
“Scams are not minor crimes but destroy livelihoods, undermine confidence in the digital economy and erode public trust nationwide,” he said.
He urged the federal government to introduce dedicated anti-scam legislation, empower authorities to halt suspicious transactions, penalise mule accounts, and strengthen real-time inter-agency cooperation.
