Scams need to be tackled

suppadmin | December 19, 2025

Kota Sentosa State Legislative Assemblyman Wilfred Yap has called on the Federal Government to urgently reform Malaysia’s laws to address the alarming rise in scam cases that continue to dominate daily news headlines.

He said frequent reports of retirees losing their life savings, families falling into debt and small business owners being financially ruined show that scams are no longer isolated incidents but a serious and escalating national crisis.

“As a state assemblyman, I am deeply concerned by the sheer frequency and scale of scam cases reported in the media. Despite repeated warnings and enforcement actions, losses continue to rise, showing that our current legal framework is not keeping pace with modern scam syndicates,” he said.

Yap noted that scammers are mainly charged under Sections 417 and 420 of the Penal Code, which were designed to address traditional fraud and are increasingly inadequate against sophisticated, technology driven scams that operate across digital platforms and borders.

He added that while the Communications and Multimedia Act 1998, particularly Section 233, is used to act against scam messages on WhatsApp, SMS and social media, the penalties do not reflect the severe financial devastation suffered by victims.

“The Anti Money Laundering, Anti Terrorism Financing and Proceeds of Unlawful Activities Act 2001 is important for tracing and seizing illegal proceeds, but it is largely reactive. In many cases, action only begins after funds have already been transferred or moved overseas, when it is often too late,” he said.

According to Yap, this explains why many victims are told that recovery is unlikely even when they report cases promptly, as existing laws tend to respond only after the damage has been done.

He pointed to Singapore’s Protection from Scams Act as an example of a stronger preventive approach, including firm action against mule account holders who face severe penalties, swift asset forfeiture and restitution orders.

“Malaysia’s experience shows that mule accounts remain a weak link. Penalties are inconsistent, deterrence is insufficient and syndicates continue to exploit this loophole,” he said.

Yap stressed that scams are not minor crimes, as they destroy livelihoods, undermine confidence in the digital economy and erode public trust.

“The daily headlines should be a wake up call. Malaysia must move beyond outdated and fragmented legal tools,” he said, urging the government to introduce dedicated anti scam legislation, grant enforcement agencies pre emptive powers to halt suspicious transactions, impose tougher penalties on mule account holders and strengthen real time cooperation between banks, telecommunications companies and law enforcement.

“Protecting Malaysians from scams is not optional. It is a responsibility and the time to act is now,” he added.