Malaysians lose $12.8 billion to scams in a year, equivalent to 3 percent of the nation’s gross domestic product (GDP), as artificial intelligence (AI)-powered scams on the rise, a report said Thursday.
The State of Scam Report 2024, conducted by the Anti-Scam Alliance (GASA) in collaboration with Whoscall and Feedzai, said the rise of AI-powered scams is particularly troubling, as 25 percent of Malaysians expressed uncertainty about whether artificial intelligence was involved in the scams they encountered.
This gap in awareness leaves Malaysians vulnerable to more sophisticated scams that exploit advanced technology to deceive victims, such as deepfake videos and voice imitation, making them harder to detect.
The report found that 74 percent of respondents encountered scams at least once a month, with 43 percent noting an increase in scam attempts over the past year.
Common delivery methods include phone calls, instant messaging apps, and social media platforms such as WhatsApp, Telegram, and Facebook, where scammers have become increasingly active. Notably, text and SMS scams have surged by 8 percent compared to 2023.
The emotional toll on victims is profound, with 57 percent reporting a strong emotional impact due to their experiences.
This distress is compounded by financial losses; the average loss per victim was reported at $2,726, with only 2 percent managing to fully recover their funds — a sharp decline from the previous year’s 8 percent.
The report showed 33 percent of scams are completed within 24 hours of first contact while 20 percent reported that the scam was over in minutes. This highlighted the importance of being alert at all times as scammers are often opportunists.
At 23 percent, investment scams are the most common type of scam in Malaysia, with identity theft closely following at 21%. Shopping scams came in a close third at 20 percent.
As a result of these experiences, 63 percent of Malaysians reported decreased trust in online platforms and digital transactions.
Alarmingly, 70 percent of scam victims did not report their cases to the authorities, a 5 percent drop from the previous year, highlighting growing skepticism regarding the effectiveness of reporting processes.
From those surveyed, 32 percent of the respondents have experienced loss of money from scams.
Manwoo Joo, Chief Operating Officer of Gogolook, emphasized the importance of proactive fraud prevention in today’s digital landscape.
“With advanced anti-fraud applications like Whoscall serving as the first line of defense against scammers, we can significantly reduce the risk of falling victim to scams,” he said.
He also note Whoscall is actively collaborating with the local government such as Royal Police Malaysia (PDRM) and CyberSecurity Malaysia to strengthen efforts in tackling scammers and enhancing public protection.
“We are continuously exploring advancements in technology, including AI-driven features, to stay ahead of evolving scam tactics,
“Our goal is to leverage cutting-edge solutions to provide Malaysians with the tools they need to identify and stop scams before they cause harm,” he added.
In light of these findings, experts also urge for enhanced public education on recognizing and reporting scams, improved transparency in reporting processes, and stronger law enforcement responses.
The need for comprehensive strategies involving technology and community engagement has never been more critical as Malaysia grapples with this pervasive issue, said the statement.
Malaysia plans National Cloud Policy, AI regulatory framework