Ecommerce fraud cases outnumber those of investments and loans
KUALA LUMPUR: When Covid-19 struck in early 2020 and millions of people were stuck at home with nowhere to go, online shopping started picking up and not long after, so did ecommerce scams.
According to the Bukit Aman Commercial Crime Investigation Department (CCID), over RM305.94mil was lost to ecommerce scams between 2021 and August 2023.
Its director Comm Datuk Seri Ramli Mohamed Yoosuf (pic) told The Star that over the last three years, his department had observed that ecommerce scams were becoming more prevalent nationwide.
Ecommerce scams refer to fraudulent online shopping offers and tend to feature “sellers” offering bogus items either on online purchasing platforms or via social media platforms.
In most cases, the seller disappears without a trace once they receive payment from their victims.
“In terms of cases being reported, ecommerce has topped the charts since 2021 with 9,499 cases recorded that year, 9,253 cases in 2022 and 7,911 cases between January and August this year,” said Comm Ramli.
“The top three types of scams reported are ecommerce scams, bogus loans and investment scams.
“Based on our statistics, cases of ecommerce scams reported greatly outnumber the other two types.
“In the past three years, 26,663 ecommerce scam cases were reported between January 2021 and August 2023 compared with 10,759 loan scams and 9,640 investment scams reported over the same period.”
He added that while losses from ecommerce scams had been on the rise since 2021, the biggest increase was seen this year with RM144.82mil in losses recorded between January and August.
“The year has not even ended yet and already we have recorded a RM56.73mil increase in losses compared with the RM88.09mil recorded in 2022. In 2021, we recorded RM73.02mil in losses,” he said.
He added that between January and August this year, police arrested 3,659 suspects in connection with ecommerce scams.
Comm Ramli said cheating cases were becoming more challenging to curb, as technology had allowed scammers to go online.
“There is no more face-to-face between the victim and the perpetrator when it comes to online scams, which makes it tough for suspects to be identified and brought to justice.
“There is room for us to improve ourselves. As online scams increase, we need to better equip ourselves with new laws that are more relevant to combat such scams,” he said, adding that he welcomed a multi-agency approach to tackle these new forms of crime.
When asked if the police were beefing up their strategies and equipment to combat scam syndicates, Comm Ramli said they were working with other agencies such as the Malaysian Communications and Multimedia Commission as well as Bank Negara Malaysia.
“As criminals evolve, we, too, have to evolve in order to stay one step ahead of them. I will not elaborate on our strategies as it may open the door to the scam syndicates to alter their modus operandi, but rest assured that we are doing our part to fight them head to head.
“We are also part of the National Scam Response Centre (NSRC) and I must say that in terms of efficiency, it is quite effective,” he said.
He said anyone who feared that they have been scammed can contact the NSRC at 997 and action would be taken immediately.
Comm Ramli said there were some procedural matters being tweaked in order to make their efforts more proactive.
He added that their main aim was to retrieve the money for the victims.
There has been a 58% drop in cases of unauthorised banking transactions reported to the National Scam Response Centre in the past five months because of measures to counter scammers.
The Star Malaysia
by charles ramendran and Junaid IBRAHIM
— THOMAS YONG/The starAn educational meeting: Kamarul Zaman (left) speaking to some teachers during the threat of scammers in current times town hall session at bank simpanan nasional, Johor baru. teachers are among the most common victims of online scams, which have resulted in over rm10.02mil in losses this year alone.
> Kill switch
Deactivates bank accounts and app access in the event of scams.
> Single device
Applies authentication apps to a restricted single device.
> Emergency centre
Combats scams through National Scam Response Center hotline at 997.
Special measures taken by financial institutions in recent months to counter unauthorised banking transactions commonly pulled off by scammers have borne fruit with commendable results.
Bank Negara governor Datuk Abdul Rasheed Ghaffour said the introduction of measures such as restricting authentication apps to a single device and introducing a “kill switch” for bank clients to freeze their accounts when they became accessible to hackers or scammers has resulted in a steep decline of 58% in unauthorised banking transactions reported to the National Scam Response Centre (NSRC) in the past five months.
He said the NSRC, which was launched a year ago, has received over 19,000 reports on scam cases, which led to the identification of 43,000 mule bank account holders and the freezing of more than Rm60mil.
“These early signs are very encouraging, and I trust we will see a further decline in cases as we go forward.
“As for the NSRC, I am pleased that efforts to take it to the next level are underway. Falling victim to financial fraud is undoubtedly difficult for those affected, with some victims losing their entire life savings and struggling to regain their economic footing,” said Abdul Rasheed during the launch of the 13th International Conference on Financial Crime and Terrorism Financing (IFCTF) 2023 at the Kuala Lumpur Convention Centre here.
He said dealing with financial crimes demands integrity, which is the key to preserving public confidence and trust in the financial system.
Abdul Rasheed said whether the role is in prevention, supervision or enforcement, reporting institutions, regulators, supervisors, and law enforcement agencies alike must discharge their mandate with full integrity.
“As our economy continues to grow, we must remain vigilant against evolving threats. The five high-risk crimes – corruption, fraud, drug trafficking, smuggling and organised crimes – that were identified in the National Risk Assessment (NRA) 2020 will continue to be our focus.
“However, given the evolving landscape, we have commenced a renewed risk assessment and will share our findings in the first half of 2024,” he said.
Also present at the event was Asian Institute of Chartered Bankers (AICB) chairman Tan Sri Azman Hashim.
In a briefing with the media at the event, Malaysian Communications and Multimedia Commission (MCMC) commissioner (online harms and network security committee) Derek John Fernandez said the escalation of online crimes is a worldwide trend and a result of digitalisation.
He said online criminals are emboldened as they can remain anonymous and safe from even the long arm of the law with the use of sophisticated technology, some of military grade, to penetrate their targets and escape untraced.
He said between 2018 and August 2023, the MCMC blocked 2.5 billion phone calls on suspicion of being involved in crimes.
According to him, the commission disabled 4,000 phishing sites between 2020 and August 2023.
Derek said from 2021 to August 2022, 581 million SMSES were blocked, and 237,999 mobile and fixed phone lines linked to the suspicious messages had their services terminated.
He said for the same period, 70 million peer-to-peer SMSES with suspicious hyperlinks were also prevented from reaching its intended recipients.
Derek said, on the request of the police, the commission also shut down 29 websites suspected to be involved in cheating activities.
He said 7,754 social media accounts were also flagged, with action taken for impersonation.
“This is a small fraction of the problem. In reality, it is seven times bigger because most people do not report their cases. This is the challenge faced by the MCMC,” he said.
At the same event, the Association of Banks in Malaysia (ABM) and the Association of Islamic Banking and Financial Institutions of Malaysia (AIBIM) launched their anti-scam awareness campaign, #Jangankenascam.
ABM chairman Datuk Khairusalleh Ramli said according to an industry survey on scam awareness for bank clients, nine out of 10 of them read scam alerts and were updated on the latest scam tactics, but only 60% of them felt they were prepared to counter the scams.
He said the survey also revealed that close to 80% of bank clients believe victims of scams exposed their banking credentials inadvertently to the fraudsters.
“To fight scammers, we need to learn their language. We hope that the experiential aspect of the #Jangankenascam campaign, together with the introduction of the anti-scam resource centre at www.jangankenascam.com, can provide the public with an avenue that enables them to understand the manipulation techniques used by scammers in financial scams.
“They must be alert at all times and not share their banking information with anyone,” he said.
Johor police chief Comm Datuk Kamarul Zaman Mamat wants a scam response centre set up in the state to combat scams more effectively.
“Currently, the national scam response centre is set up in the capital city and I hope that a similar centre can be set up in Johor at the state police headquarters,” he said.
“This way, those in Johor who need help can seek help directly and we will have access to the information too.
“If the operating hours are an issue, they can use the IPK (Johor police headquarters) as we are on standby 24 hours a day,” he said during the Threat of Scammers in Current Times town hall session with teachers at Bank Simpanan Nasional here yesterday.
The National Scam Response Centre collaborates with the police, Bank Negara Malaysia, the Malaysian Communications and Multimedia Commission, the National Anti-financial Crime Centre and financial institutions.
The public can call the centre’s hotline at 997 if they fear falling victim to a scam or head to the nearest police station.
He also said that teachers are among the most common victims of online scams, which have resulted in over Rm4.24mil in losses so far this year.
He said 117 teachers reported getting scammed from January to September this year.
“Scammers usually do not target a certain group of people as they randomly pick their potential victims.
“However, Johor has a large number of teachers – more than 50,000 – so the probability of scammers preying on teachers is higher,” he said.
Teachers were part of the total of 388 scammed civil servants, involving a value of Rm10.02mil, he said.
“In terms of value, the amount recorded in the first nine months of the year was higher than the value of Rm3.41mil recorded in the same period last year.
“According to police investigations, most fraud occurred via mobile phone calls or text messages,” said Kamarul Zaman.
“This is why we are prioritising educators. We hope to engage with the public and departments, such as the Education Department, about prevention and ways of identifying scam calls,” he said, adding that about 250 teachers statewide attended the town hall session.
He also urged the public to be in tune with the news and look for the latest scam trends to avoid falling into the trap.
Bank Negara governor Datuk Abdul Rasheed Ghaffour said the introduction of measures such as restricting authentication apps to a single device and introducing a “kill switch” for bank clients to freeze their accounts when they became accessible to hackers or scammers has resulted in a steep decline of58%in unauthorised banking transactions reported to the National Scam Response Centre (NSRC) in the past five months.
Experts: Screening needed as cases now surging from zero between 2018-2021
PETALING JAYA: The spike in the number of malaria cases in several parts of the country so far this year is causing concern among public health experts, who cite climate change as among the contributory factors.
According to the figures, the number of cases so far this year has already exceeded the 404 reported in the whole of 2022.
There were 215 cases reported in Kelantan this year and 840 cases in Sabah as of June, while Terengganu reported 26 cases over the first five months of the year.
The rise in malaria cases also comes as the country is having to deal with an increase in dengue cases due to the hotter and drier weather caused by the El Nino phenomenon.
Malaria is caused by a parasite transmitted through the bite of an infected female anopheles mosquito.
Health experts said zoonotic malaria – carried by monkeys and spread to humans through mosquito bites – remain a concern and they have called for mass blood screening in affected areas.
The zoonotic transmission of malaria usually occurs among individuals residing near forest fringes, plantations and agricultural sites, affecting those involved in activities such as logging, fishing, planting and hunting-gathering.
Public health expert Datuk Dr Zainal Ariffin Omar said climate change and deforestation could be among the contributing factors.
“It could also be due to people moving nearer to places that are a source of malaria,” said the former Health Ministry official.
Universiti Kebangsaan Malay-sia’s Prof Dr Sharifa Ezat Wan Puteh said warmer temperatures and changes in rainfall patterns due to climate change, as well as changes in the behaviour of mosquitoes carrying malaria could have also led to the increase in cases.
“In Kelantan, however, this could be more due to human- animal conflict,” she added.
She said while Malaysia has entered the phase of eliminating the indigenous transmission of malaria, zoonotic malaria transmitted from macaque monkeys remains a public health problem.
“Indigenous transmission” is the mosquito-borne transmission of malaria in a geographic area where malaria occurs regularly.
“The parasite known as Plasmodium Knowlesi is usually carried by macaque monkeys and spreads to people when a mosquito bites an infected macaque and then bites a person.
“This happens during logging, fishing, planting, deforestation or when entering a jungle.
“Monkeys also travel to nearby houses and villages and spread the parasite. It is also known as simian malaria,” she added.
Prof Sharifa Ezat said delays in seeking medical attention and a lack of preventive measures such as putting up mosquito nets might lead to a further increase in cases.
She said the disease could also be transmitted via the migration of people from malaria-prone countries to Malaysia.
She proposed the government conduct mass blood screenings to detect the malaria parasite among workers in the afflicted areas in Kelantan.
“We also need to keep a watchful eye on full-blown malaria cases, especially among children.”
Prof Sharifa Ezat said the resistance of malaria parasites to anti-malaria treatment drugs has also heightened the threat of the disease.
On Sept 25, Kelantan Health Department director Datuk Dr Zaini Hussin said the state had recorded 215 malaria cases this year, an increase of 84% – or 98 – cases compared with the same period last year.
Of this, 53 were human malaria infections and 162 involved zoonotic transmissions. However, there have been no malaria-related fatalities reported in the state so far.
Dr Zaini said frequent exposure to forests and plantations were among the factors leading to the increase in malaria infections in Kelantan.
Of Sabah’s malaria cases, 816 involved zoonotic malaria, followed by 14 imported human malaria cases, and 10 human-introduced malaria infections.
On March 14, Health Minister Dr Zaliha Mustafa said the country is facing a new threat in the form of rising zoonotic malaria cases.
I would like to remind readers that “prevention is better than a cure”, in this case related to responsible design, construction and maintenance of residential and commercial premises. Abandoned construction sites where pools of water can collect must also be addressed and resolved.
Fully insect-screened windows and doors to the exterior reduce the risk of insects entering the premises. Sanitary vent pipes on the roof should also be sealed with non-corrosive aluminium insect mesh to stop mosquitoes from finding their way downwards (attracted by the sewer odour) and entering the toilet from floor drain outlets.
The best approach, however, is to ensure mosquitoes do not breed. The insects have a lifecycle of eight to 10 days – hence removing or draining stagnant water in your surroundings in good time will be effective.
Neighbourhood water retention ponds built to temporarily hold water to prevent flooding must be regularly maintained by removing rubbish and sediment at the final discharge point into the main stormwater drains to avoid the situation of ponding for more than a week and thus breeding mosquitoes.
Discarding rubbish, debris and kitchen waste into drains blocks water flow and creates mosquitoes habitats – restaurants, shops and food stalls are big contributors to smelly drain clogs and this uncivil behaviour must be stopped with a combination of education campaigns and strict enforcement.
When houses (and shops) are renovated, it is common to reduce or totally seal off the limited access openings to culverts, denying municipal workers the chance to clear the drains of obstructions. This can lead to stagnant water collecting for long periods, supporting endless lifecycles of mosquito reproduction.
Occasional chemical fogging and larviciding have been common reactions to cases of infections to destroy adult mosquitoes and larvae. However, this is a non-proactive reaction.
The reactive cure mentality must be replaced by the prevention – proactive – mindset that simply stops water from stagnating long enough to allow the mosquito to complete its reproduction cycle. So keeping culvert access unblocked as originally designed, disposing of rubbish and food wastes responsibly, maintaining any pool of water, all this will help to prevent mosquitoes from breeding as well as generally improve hygiene. A bonus: We won’t have to breathe in those nasty fogging vapours.
PETALING JAYA: Several financial institutions, including Public Bank and CIMB, have announced a waiver of the merchant discount rate (MDR) for vendors accepting payments via the DuitNow QR code platform.
CIMB has decided to postpone the MDR until the end of the year, while Public Bank will maintain the waiver until further notice.
Public Bank has communicated on its website that it would waive the following fees for QR payment acceptance, effective from Oct 1 until further notice.
It said merchants would enjoy fee waivers for categories such as payment acceptance via Current and Savings Accounts, ewallets, and Maintenance Fee and API Integration Fee under the bank’s Enterprise Plan.
Credit card transactions under the Enterprise Plan will incur a charge of 0.25%.
The DuitNow QR service enables money transfers between banks and non-bank entities by scanning QR codes.
Related video: DuitNow QR charges won’t burden low income groups, says PM
It was established by Payments Network Malaysia Sdn Bhd (PayNet) under Bank Negara’s Interoperable Credit Transfer Framework.
Earlier yesterday, Paynet confirmed that vendors would be charged a transaction fee for payments received via the DuitNow QR code platform starting Nov 1.
It said there were charges for two different epayment types – the MDR and the 50sen fee for transactions exceeding RM5,000 for peer-to-peer fund transfers between personal QR codes, not payments to merchants.
Merchants, it said, would receive the payment made by their customers after deducting the MDR, which is charged based on a percentage of the transaction value.
PayNet said debit and credit card payments were subjected to MDR, while there is currently a MDR waiver for QR payments.
Starting Nov 1, the MDR waiver for DuitNow QR payments would be lifted, it said in a statement, adding that the MDR was neither a new fee nor an additional charge.
“As an incentive to promote usage during the introduction of QR payments in 2019, the MDR was waived. This was extended due to the Covid-19 pandemic.”
China's National Day, which falls on October 1, is just around the corner. For the Chinese people, September 30 marks the start of a seven-day holiday following the Mid-Autumn Festival.
In the upcoming days, they will enjoy the happiness and joy of the "long holiday," which they have earned through their hard work.
Meanwhile, across the ocean in the US, this year's October 1 is a critical day.
Federal government agencies will run out of funds previously approved by Congress at midnight on September 30, the end of the current fiscal year. A government shutdown due to the bipartisan inability to reach an agreement seems inevitable.
For the rest of the world, this situation appears to be a farce of a commonplace American political struggle. People are not concerned about whether Washington will shut down. Where exactly is the US debt ceiling? This is what worries them. Can it continue to rise indefinitely?
The US has not defaulted on its national debt in the past, which is why US debt has become the most reputable in the world. But it has now reached an alarming height - $33 trillion! That amounts to $100,000 per person across the nation! What's even more concerning is its growth rate, with an increase of $10 trillion in three years! That means $833 million is being added to the debt every hour since it crossed the $33 trillion mark.
A nation that frequently accuses other countries of creating debt has set a huge trap for the world in recent decades. Let us not overlook the fact that the US possesses the power to "print money," which it uses to sustain Washington's audacious habit of borrowing and spending recklessly, exemplifying its dominant "style" of hegemony. Government finances in the US have struggled for nearly half a century due to excessive spending without proper control, resulting in the continuous accumulation of federal government debt.
In the realm of election politics and hegemonic policy, the US has wasted significant financial resources. These resources have been used to cater to the interests of interest groups and self-serving politicians. Consequently, there has been an excessive increase in military expenditures to sustain hegemony, along with a continuous distribution of funds to appease voters.
Filippo Gori, an economist at the Organisation for Economic Co-operation and Development, has published an article entitled "America's Debt-Ceiling Disaster: How a Severe Crisis or Default Could Undermine U.S. Power," on the website of Foreign Affairs magazine (April 24, 2023).
The article points out that "because most international trade is in U.S. dollars, the United States can print money to pay for goods that it buys from abroad, allowing it to finance a large international trade deficit without having to worry that it will run out of cash."
This monopoly advantage, known as "too big to fail," has resulted in a peculiar situation where the US is "insolvent" but not officially bankrupt. As a result, the US must employ diverse strategies to uphold the dollar's dominance.
Another fundamental truth is that when the global community thinks about how the impact of this "Grey rhino" can be prevented and begins to make necessary preparations, the hegemony of the US and its foundation, the dollar, will surely be shaken.
China is a significant creditor of the US. The US' containment of China, particularly through creating military tensions in China's neighborhood, as well as the overall restriction on Chinese manufacturing and its impact on the livelihoods of the Chinese people, has heightened China's worry about the US reneging on its debts.
The hardworking Chinese people, who are about to enjoy a wonderful holiday, know that they work hard for the well-being of their families. If their hard-earned money were to be used to prop up an empire's hegemonic and brutal actions, as well as an unsympathetic political struggle, and then they were to be paid back in the form of "printed money," they would definitely say "no."
We believe that hard-working people around the world would share the will of the Chinese people.
The hypocrisy of the US is on full display in its newly-released report on China, while Washington's anxiety on its own capability to dominate public opinion is also bubbling.
According to the Bukit Aman Commercial Crime Investigation Department (CCID), over RM305.94mil was lost to ecommerce scams between 2021 and August 2023.
“The top three types of scams reported are ecommerce scams, bogus loans and investment scams.
