Malaysians lose US$12.8 bln to scams in a year, equivalent to three pct of nation's GDP

KUALA LUMPUR: Malaysians have lost a total of US$12.8 billion (RM54 billion) to scams in a year, representing three per cent of the country's gross domestic product, said trust tech company Gogolook.

In a joint statement today, according to the State of Scam Report 2024, it said 70 per cent of scam victims did not report their cases to the authorities, representing a five per cent drop from the previous year.

"This highlights the growing skepticism regarding the effectiveness of reporting processes. From those surveyed, 32 per cent of the respondents have experienced loss of money from scams," it said.

Gogolook said the rise of artificial intelligence (AI)-powered scams is particularly troubling, as 25 per cent of Malaysians expressed uncertainty about whether AI was involved in the scams they encountered.

"This gap in awareness leaves Malaysians vulnerable to more sophisticated scams that exploit advanced technology to deceive victims, such as deepfake videos and voice imitation, making them harder to detect," said Gogolook.

The tech company said the report found that 74 per cent of respondents encountered scams at least once a month, with 43 per cent noting an increase in scam attempts over the past year.

"The emotional toll on victims is profound, with 57 per cent reporting a strong emotional impact due to their experiences.

"This distress is compounded by financial losses; the average loss per victim was reported at USD2,726, with only two per cent managing to fully recover their funds -- a sharp decline from the previous year's eight per cent," it added.

Meanwhile, Gogolook chief operating officer Manwoo Joo said the report emphasised the importance of proactive fraud prevention in today's digital landscape.

"With advanced anti-fraud applications like Whoscall serving as the first line of defence against scammers, we can significantly reduce the risk of falling victim to scams.

"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 said.

The State of Scam Report 2024, conducted by the Global Anti-Scam Alliance (GASA) in collaboration with Whoscall and Feedzai, surveyed 1,202 Malaysians, providing critical insights into the nation's ongoing battle with fraudulent schemes.

-- BERNAMA

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