Malaysia: Fake Investment Schemes Account for Half of RM5.37 Billion Online Scam Losses

Fraudulent investment schemes accounted for nearly half of Malaysia's RM5.37 billion (US$1.26 billion) in online scam losses between 2024 and May 2026, making them the country's most financially damaging cybercrime category, according to the Home Ministry.

Home Minister Datuk Seri Saifuddin Nasution Ismail said victims lost RM2.68 billion, or 49.9% of total reported scam losses, to non-existent investment schemes. Telecommunications scams ranked second with RM1.54 billion (28.7%), followed by e-financial fraud at RM660.64 million (12.3%). Combined, these three categories accounted for more than 90% of all reported financial losses.

The figures were released in a written parliamentary reply, highlighting the growing impact of investment fraud, which typically involves fake trading platforms, cryptocurrency schemes, or high-yield investment opportunities promoted through social media, messaging apps and fraudulent websites.

In response, Malaysian authorities have stepped up enforcement by expanding the role of the National Scam Response Centre (NSRC), which coordinates responses between the Royal Malaysia Police, Bank Negara Malaysia, the Malaysian Communications and Multimedia Commission (MCMC), and financial institutions. Victims are encouraged to report scams immediately through the 997 hotline, allowing authorities to freeze suspicious transactions before funds leave the banking system.

Police have also intensified financial forensic investigations, focusing on tracing illicit fund flows, dismantling mule account networks and conducting targeted operations against organised scam syndicates.

The government has further strengthened its legal framework through new provisions under Sections 424A to 424D of the Penal Code, introducing tougher penalties for online fraud offences as Malaysia seeks to curb the rapid growth of investment-related cybercrime.