Scam victims recover mere 1% of RM1.23b lost in decade

KUALA LUMPUR — A stark picture of Malaysia's struggle against financial fraud emerged this week when lawmakers were told that scam victims have recovered just one per cent of their losses over the past decade. Out of RM1.23 billion lost to various scams, victims have managed to recoup approximately RM14 million, according to figures presented to Parliament.

The National Scam Response Centre, tasked with coordinating efforts to tackle fraud and assist victims, shared the recovery statistics as part of its update to members of Parliament. The figures highlight the difficulty authorities face in tracing stolen funds and securing their return, particularly when criminal networks operate across multiple jurisdictions.

The low recovery rate reflects broader challenges within the scam investigation and prosecution framework in Malaysia. Investigators often struggle with the sophisticated methods employed by scammers, including the use of cryptocurrency and cross-border money transfers that complicate asset recovery efforts.

The disclosure has raised concerns among lawmakers about the adequacy of current measures to protect citizens and support victims. Financial fraud in Malaysia encompasses various schemes, from investment scams and online shopping fraud to loan-related deceptions, with vulnerable groups including the elderly and less-educated populations bearing the brunt of losses.

Authorities have pledged to strengthen cooperation between financial institutions, law enforcement agencies and international partners to improve victim compensation and prevent future scams. The figures underscore the need for enhanced public awareness campaigns and stricter oversight of financial transactions.