KUALA LUMPUR (Oct 3): Malaysians lost an estimated US$12.8 billion (RM53.34 billion) to scams over the past year, representing about 3% of the country's gross domestic product, according to the State of Scam Report 2024.
The average loss per victim was US$2,726 (RM11,360.10), with only 2% managing to fully recover their funds compared to 8% in the previous year, said the report, which is based on a survey conducted by the Global Anti-Scam Alliance (GASA) in collaboration with mobile app Whoscall and website checker ScamAdviser.
The survey found that 74% of respondents encountered scams at least once a month, with 43% 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% compared to 2023.
As such, app development company Gogolook, which is a founding member of GASA, stressed the importance of proactive fraud prevention by utilising anti-fraud applications such as Whoscall to reduce the risk of falling victim to scams.
"Whoscall is actively collaborating with the local government such as the Royal Malaysian Police (PDRM) and CyberSecurity Malaysia to strengthen efforts in tackling scammers and enhancing public protection," Gogolook chief operating officer Manwoo Joo said in a statement on Thursday.
"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.
Joo noted that Whoscall is the only anti-scam app approved by PDRM and was recently appointed by CyberSecurity Malaysia and Pos Malaysia Bhd (KL:POS) as their anti-scam strategic partner.
The report surveyed 1,202 Malaysians. From those surveyed, 32% of the respondents have experienced loss of money from scams.
Alarmingly, 70% of scam victims did not report their cases to the authorities, a 5% increase from the previous year, highlighting growing scepticism regarding the effectiveness of reporting processes.
The report also highlighted that investment scams, at 23%, are the most common type of scams in Malaysia, with identity theft closely following at 21%. Shopping scams came in a close third at 20%.
In light of the findings, Gogolook called for enhanced public education on recognising 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," Joo said.