Online Scam Losses Reach RM430 Million in First Quarter as Government Plans Tougher E-Commerce Laws

KUALA LUMPUR, July 2 — Malaysia recorded RM430 million in losses from online scams during the first three months of 2026, highlighting the continued scale of cyber fraud as the government moves to strengthen consumer protection through a new legal framework for the digital economy.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the latest figures underscore the urgency of enhancing enforcement, improving inter-agency coordination and introducing stronger legislation to safeguard consumers conducting business online.

Speaking at the Shopee Seller Summit 2026 and the “Jom Beli Selamat” campaign, Armizan said online fraud has continued to inflict substantial financial losses despite ongoing efforts to combat scam syndicates.

Government data shows that scam-related losses reached RM1.57 billion in 2024 involving 35,368 reported cases before almost doubling to RM2.97 billion across 66,204 cases in 2025.

Combined losses over the two-year period exceeded RM4.54 billion, illustrating the growing financial impact of online fraud on individuals and businesses.

Armizan said the establishment of the National Scam Response Centre (NSRC) forms part of the government’s strategy to improve coordination among enforcement agencies while enabling faster intervention to recover victims’ funds.

According to him, maintaining consumer confidence is essential for the continued expansion of Malaysia’s digital commerce sector.

“The government believes consumer trust is the foundation of sustainable e-commerce growth. When consumers feel confident and secure while shopping online, digital platforms expand and businesses benefit through stronger sales,” he said.

He added that the government’s efforts to address cost-of-living challenges extend beyond price control measures and include creating a safer and more trusted digital marketplace.

Official figures presented during the event showed that complaints involving online transactions have fluctuated over the past five years.

Authorities recorded 11,463 complaints in 2021 before the figure declined to 8,847 in 2022. Complaints rose again to 14,441 cases in 2023 before falling to 10,488 in 2024 and declining further to 8,475 cases in 2025.

Armizan noted that despite these fluctuations, Malaysia’s e-commerce industry continues to record strong growth.

Based on Department of Statistics Malaysia (DOSM) data, e-commerce revenue increased from RM1.1 trillion in 2021 to RM1.13 trillion in 2024 and is projected to reach RM1.3 trillion in 2025, reflecting the sector’s expanding contribution to the national economy.

To strengthen regulatory oversight, the ministry is proposing a comprehensive legal framework to replace the Electronic Commerce Act 2006, which currently serves primarily as enabling legislation.

Armizan said the proposed policy will be submitted to the Cabinet next week and includes 10 key recommendations before being referred to the Attorney General’s Chambers for the drafting of new legislation.

The proposed framework will address three main areas: the legal structure governing electronic commerce, the responsibilities of industry players and consumers, and enhanced enforcement powers together with tougher penalties.

Among the measures under consideration are maximum fines of up to RM10 million, expanded investigative and inspection powers for enforcement agencies, authority to conduct digital searches and investigations, and greater regulatory flexibility to respond to emerging challenges in the rapidly evolving digital marketplace.

–wilayah.com.my

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