DESPITE the best efforts of the National Scam Response Centre (NSRC), scams continue to increase. In 2023, losses totalled RM1.34 billion, said the NSRC.
Losses due to investment scams more than doubled from RM209 million in 2022 to RM437 million in 2023, an increase of 109 per cent. Those affected by scams include professionals and the educated. So all consumers are potential victim of scams.
Once you are a victim, the possibility of recovering your losses are slim.
New scams grow every day.
The latest includes embedding malware in wedding invitation cards or using government assistance schemes to deceive people.
So it's vital that scam awareness and education programmes are strengthened. A one-size-fits all strategy may not be effective.
FIRSTLY, differing demographics may be exposed to different scams.
For example, youths may be more exposed to job scams. Young working adults may be attracted to cryptocurrency scams. The elderly may fall for investment scams. So the right messaging and the right medium are needed.
For the younger group, TikTok or YouTube videos may be the right medium of messaging. For others, face-to-face talks are appropriate.
For some, posters and bro-chures may be effective.
The focus of the education programme is not just on delivering knowledge but also helping consumers identify when scams are being executed and, more importantly, changing the behaviour of consumers to protect themselves from scams.
The aim of scam education is not just delivering knowledge, but also enabling consumers to identify when scammers contact them.
Consumers must be exposed to multiple strategies used by scammers to manipulate consumers' behaviour.
Scammers use emotional manipulation, including fear-based strategies, such as impersonating a police officer, income tax officer or anti-corruption commission officer.
It would also involve urgency or deadlines, for example, getting arrested, being charged under the Anti-Money Laundering Act, or major financial loss if not acted on "immediately".
It might also involve high returns that the victim must act on urgently to benefit.
SECONDLY, the NSRC must coordinate the efforts of regulatory agencies — such as police, banks, telcos and the Securities Commission — to protect consumers as well as react rapidly once scams are reported to ensure the maximum possibility of fully recovering the money.
The NSRC may explore new players to work with to minimise scams. This would include online selling platforms and social medium platforms.
THIRDLY, when consumers get scammed, they bear the full brunt of the losses. So even if banks or telcos did not act responsibly to protect consumers, consumers still bear the full brunt.
In Singapore and in many jurisdictions, regulators first examine if the banks had undertaken the fullest security responsibility to protect consumers.
Next, telcos are examined if they had acted responsibly, and only then are consumers held responsible.
This is the concept of shared responsibility.
The NSRC's priority should be to work towards shared responsibility among the players involved to ensure that the best efforts are in place to protect or minimise losses to consumers.
The Federation of Malaysian Consumers Associations (Fomca) hopes that shared responsibility would be a priority of a reformed NSRC.
And if consumers do become victims, then all parties involved must share the responsibility for the losses. That is only fair.
The writer is deputy president, Fomca