The alarming sophistication of AI-powered fraud is no longer a distant threat but a present reality in Malaysia, with scammers leveraging advanced artificial intelligence to impersonate trusted individuals and figures, leading to significant financial losses for unsuspecting victims. What used to be easily identifiable by bad grammar or suspicious links has now evolved into highly convincing digital deception.
Malaysian authorities, including the Bukit Aman Commercial Crime Investigation Department (CCID) and CyberSecurity Malaysia (CSM), have issued urgent warnings as these AI-driven scams proliferate across the nation. In the first three months of 2025 alone, the country recorded 12,110 online fraud cases, with total losses amounting to RM573.7 million, with generative AI tools playing an increasing role in these criminal activities. Last year, Malaysians reportedly lost a staggering RM2.11 billion to such scams across 13,956 reported cases.
Here's a breakdown of the most prevalent AI scams targeting Malaysians:
1. AI Voice-Cloning Scams (Deepfake Audio):
This is perhaps the most insidious and rapidly growing form of AI scam. Scammers use AI to mimic the voices of family members, friends, colleagues, or even employers with startling accuracy, often using short audio clips found publicly (e.g., on social media platforms like TikTok).
How it works: Victims receive a phone call or WhatsApp voice note from someone sounding exactly like a loved one. The caller creates a sense of urgency, claiming to be in an emergency, needing urgent money transfers for medical bills, a legal issue, or an urgent business matter (e.g., needing Touch 'n Go PINs or bank transfers). The familiarity of the voice overrides immediate suspicion, leading victims to act quickly without verifying.
Real-life cases:
In May 2025, a woman in Selangor lost RM5,000 after an AI-cloned voice of her employer repeatedly called, demanding Touch 'n Go PINs for an urgent matter. The boss later confirmed his phone had been off.
A travel agent in Kuala Terengganu lost RM49,800 after receiving a highly convincing call from someone sounding exactly like a close friend in urgent trouble.
Similar incidents saw a 26-year-old interior designer in Kuala Lumpur lose RM3,000 and a 50-year-old housewife in Penang lose RM4,800 to cloned voices of trusted contacts.
CyberSecurity Malaysia (CSM) reported a case where scammers mimicked a family member's voice via WhatsApp voice notes to simulate an emergency and urge fund transfers.
2. Deepfake Video Investment Scams:
These scams leverage AI to create highly realistic fake videos of prominent figures, including politicians, business leaders, and celebrities, endorsing bogus investment schemes.
How it works: Scammers produce convincing AI-generated videos featuring well-known personalities such as Prime Minister Datuk Seri Anwar Ibrahim, tycoon Tan Sri Robert Kuok, former chief justice Tun Tengku Maimun Tuan Mat, Capital A Bhd CEO Tan Sri Tony Fernandes, Elon Musk, Donald Trump, and even Malaysian national icons like Datuk Seri Siti Nurhaliza and Datuk Lee Chong Wei. These videos falsely promote quick-money schemes, often promising unrealistic returns (e.g., up to 100 times the original amount). Victims are usually convinced after watching these fake promotional videos, leading them to click on suspicious links, download malicious applications, or transfer funds to fraudulent platforms.
Real-life cases:
On July 10, 2025, the Johor Royal Press Office issued a warning about an AI-generated deepfake video of His Majesty Sultan Ismail, King of Malaysia, on Facebook, falsely promoting an investment scheme.
As of March 2025, CCID Bukit Aman confirmed at least five deepfake videos impersonating national and international personalities, widely circulated to promote fake investment platforms.
Malaysian singer Siti Nurhaliza's voice and likeness were exploited in AI-generated calls and videos, with scammers luring fans with promises of video calls or fictitious rewards.
Fake videos featuring Prime Minister Datuk Seri Anwar Ibrahim, used to promote investment scams with false government endorsement, have been circulating.
3. AI-Powered Phishing and Fake Websites:
While not entirely new, AI is significantly enhancing traditional phishing tactics.
How it works: AI can generate highly realistic phishing emails, messages, and even entire fake websites that mimic legitimate brands or government agencies. These look and sound more authentic than ever, making it harder for victims to spot red flags. Scammers use these to steal personal details, payment credentials, or trick users into downloading malware.
Example: Booking.com recently reported a sharp rise in AI-created phishing emails targeting the hospitality sector globally, including Malaysia, designed to trick travelers and hoteliers into revealing sensitive data.
4. Virtual Kidnapping/Ransom Scams:
These are often complemented by voice cloning to make the threat terrifyingly real.
How it works: Criminals extort money by falsely claiming to have kidnapped a victim's loved one. An AI-cloned voice of the "kidnapped" person might be played in the background, pleading for help, intensifying the emotional manipulation and pressuring the victim to pay a ransom.
Staying Vigilant and Protecting Yourself:
Malaysian authorities and cybersecurity experts urge the public to be extremely cautious:
Verify, Verify, Verify: Always verify unexpected or urgent requests for money or personal information, especially if it comes with a sense of urgency. Contact the person directly through a known and alternative channel (e.g., call them back on a number you know is theirs, rather than replying to the suspicious call/message).
Be Skeptical of "Too Good To Be True" Offers: Investment schemes promising extremely high returns or endorsements from public figures in unusual contexts are almost always scams.
Scrutinize Deepfakes: Be aware of the signs of deepfake videos (unnatural movements, odd lighting, lip-sync errors, unusual skin tones) and voices (inconsistencies in tone or intonation).
Do Not Download Suspicious Apps: Avoid downloading applications from unverified sources or through links sent via suspicious messages.
Report Suspicious Activity: Immediately report any suspicious activity to the police (CCID) or CyberSecurity Malaysia's Cyber999 Incident Response Centre. They provide support via online forms, mobile applications, email (
[email protected]), and hotlines (1-300-88-2999 during office hours or +60 19-266 5850 24/7).
Public Awareness: Educate yourself, your family, especially vulnerable populations like senior citizens, about these evolving AI scams.
The rise of AI in fraud is a serious challenge, eroding public trust and causing immense financial harm. As AI technology becomes more accessible, continuous vigilance, critical thinking, and a proactive approach to cybersecurity are paramount for Malaysians.
