KUCHING: The rising threat of commercial crimes, scams and fraud in Malaysia has sparked calls for urgent reforms to strengthen legal and regulatory frameworks.
Sarawak Community Civil Awareness Association chairman Datuk Dr Lau Pang Heng expressed deep concern over the staggering losses due to scams, urging the federal government to implement stricter laws and regulatory measures to address commercial crimes effectively.
The Doctor of Philosophy graduate specialising in crime prevention and community policing proposed a range of recommendations aimed at safeguarding individuals and institutions.
Among the key recommendations was amending the Penal Code to impose severe punishments, including mandatory whipping, imprisonment ranging from 10 years to life, and property confiscation for crimes such as fraud, money laundering, insider trading and issuing fake invoices.
He also called for stringent regulation of financial schemes, urging that all investment schemes and financial products undergo thorough vetting by authorities.
Lau acknowledge Law deputy minister M. Kulasegaran for supporting measures to hold banks accountable for depositors’ losses, aligning with Bank Negara Malaysia’s consumer protection initiatives.
He added that proposed measures to ensure banks and financial institutions take greater responsibility.
“These include prohibiting large transfers exceeding daily limits without explicit approval from account holders and enhancing security measures to prevent unauthorised account access.
“We need too be sceptical of offers promising quick financial gains, as effortless rewards are often traps. Always verify the authenticity of businesses, safeguard personal and financial information, and report suspicious activities promptly.”
Additionally, he highlighted the issue of mule accounts, noting that scammers often use 15-20 accounts to deceive victims, with Bukit Aman reporting 208,000 mule accounts in Malaysia as of Aug 14, 2024, many involving students and the elderly.
“Amendments to the Penal Code are needed to impose stricter penalties on mule account holders, including whipping, heavy fines and imprisonment.
“Banks involved in facilitating scams must face stringent consequences, including revocation of licenses and life imprisonment and whipping for employees found guilty of aiding illegal syndicates.”
Besides, he added that the adoption of anti-scam technology, such as applications like Truecaller and Whoscall, was encouraged to block suspicious calls.
He also emphasised the importance of safe banking practices, urging the public to prioritise secure payment methods and avoid sharing sensitive personal or financial information online.
Lau also highlighted Institutional accountability sharing reports indicating that five banks were exploited by international scammers in 2023, leading to millions in losses.
“At least 20 bank employees, including auditors and frontline officers, were found to have facilitated these activities.
“Revoking banking licences and imposing life imprisonment on those complicit in fraud were among the suggested actions to deter such crimes.”
For the record, 86 commercial crime cases we recorded daily between January and Nov 24, 2024, in Malaysia, resulting in total losses nearing RM2.5 billion.
According to Federal Commercial Crime Investigation Department director Datuk Seri Ramli Mohamed Yoosuf, while the number of cases has decreased compared to 2023, monetary losses from scams have surged by 37 per cent.
