Online scams continue to grow at an alarming rate in Malaysia, with police recording 66,204 cases last year. That figure represents an 87% increase compared with the 35,368 cases reported in 2024.

Inspector-General of Police Tan Sri Mohd Khalid Ismail said the total financial losses linked to online scams in 2025 reached RM2.97 billion. This was RM1.40 billion higher than the previous year, showing that scam cases are not only increasing in number but also becoming more financially damaging.

The figures were shared during the launch of the Combat Scam campaign, an initiative aimed at strengthening cooperation between enforcement agencies, financial institutions, and the public.

Phone Scams Remain The Most Common Threat

Among the various types of online fraud reported, phone scams remained the most common. Police recorded 28,388 phone scam cases, making it the largest category by number of reports.

Phone scams usually work by manipulating victims through fear, urgency, or false authority. Scammers may pretend to be from banks, government agencies, delivery companies, police departments, or other trusted organisations. Victims are then pressured into sharing personal details, transferring money, or following instructions that compromise their accounts.

The continued rise of phone scams shows that even with better public awareness, many people can still be tricked when criminals use convincing scripts and psychological pressure.

Investment Scams Caused The Biggest Financial Losses

While phone scams recorded the highest number of cases, non-existent investment scams caused the largest financial losses. According to the police, losses from fake investment schemes reached RM1.47 billion.

These scams often promise high returns with little or no risk. Victims may be shown fake trading platforms, fabricated profit statements, or convincing testimonials. Some schemes also use social media, messaging apps, and online advertisements to attract potential victims.

Investment scams can be especially damaging because victims may transfer large amounts of money over time. In many cases, they only realise they have been cheated when they try to withdraw their so-called profits and are asked to pay more fees, taxes, or charges.

Scammers Are Becoming More Sophisticated

The sharp increase in online scam cases has been linked to the changing tactics used by scam syndicates. As more Malaysians rely on digital banking, e-commerce, online payments, and mobile services, criminals are also finding more ways to exploit these platforms.

Modern scam operations are no longer simple one-person attempts. Many are organised syndicates that use technology, fake identities, mule accounts, spoofed numbers, phishing links, and social engineering techniques to deceive victims.

This is why online fraud has become more difficult to detect. A scam message may look like it came from a real bank. A phone call may appear to come from an official number. A fake investment platform may look professionally designed. These details make it harder for ordinary users to immediately tell what is real and what is not.

Public Awareness Is Now A Key Defence

Mohd Khalid said prevention through education and digital security awareness has become a priority. This is an important point because enforcement action alone cannot stop every scam before it happens.

The public needs to be more cautious when receiving unexpected calls, messages, links, or investment offers. Scammers often depend on people reacting quickly without checking the facts first.

Some simple habits can reduce the risk:

Scam prevention depends heavily on slowing down, checking properly, and refusing to act based on fear or pressure.

Banks And Enforcement Agencies Need To Work Together

The IGP also stressed that the fight against scams cannot be handled by enforcement agencies alone. It requires cooperation from the public, banks, regulators, telecommunications providers, and digital platforms.

Financial institutions play a major role because many scam cases involve money transfers, mule accounts, or suspicious transactions. Faster detection, stronger account monitoring, and better customer alerts can help reduce losses.

The Combat Scam campaign is intended to strengthen this cooperation, especially between law enforcement and the banking sector. At the same time, it aims to improve financial literacy and cybersecurity awareness among Malaysians.

MyDigital ID Could Play A Bigger Role In Financial Security

Authorities are also looking at stronger measures to fight cybercrime, including the wider use of MyDigital ID within the financial sector.

Commercial Crime Investigation Department director Datuk Rusdi Mohd Isa previously said the digital identity platform includes multiple security features that are difficult for scam syndicates to replicate.

If implemented more broadly, MyDigital ID could help improve identity verification and reduce the risk of criminals abusing fake identities or impersonation tactics. However, any wider rollout would also need to be supported by strong privacy safeguards, public education, and clear implementation processes.

A Growing Problem That Needs Constant Vigilance

The latest scam figures show how serious online fraud has become in Malaysia. With more than 66,000 cases and nearly RM3 billion in losses recorded last year, scams are no longer isolated incidents. They have become a major national concern affecting individuals, families, businesses, and financial institutions.

As digital services continue to grow, Malaysians will need to become more alert when managing money online. Technology can improve convenience, but it also gives scammers more opportunities if users are not careful.

The message from authorities is clear: always verify before acting, avoid making rushed financial decisions, and use official channels when dealing with banks, government agencies, or investment platforms.