Malaysia considers legal action against Facebook over online scam cooperation failures

KUALA LUMPUR, MALAYSIA: Malaysia is considering possible legal action against Facebook over what authorities described as insufficient cooperation in efforts to combat online scams linked to the platform.

Communications Minister Fahmi Fadzil said on 24 May 2026 that the government was prepared to consider legal measures if the social media platform failed to demonstrate stronger collaboration with regulators and enforcement agencies.

Fahmi said discussions with Facebook would continue through the Malaysian Communications and Multimedia Commission (MCMC), which has been tasked with engaging the company.

“In my opinion, legal action may have to be taken, but I leave it to the MCMC on this, and give them a last opportunity to prove that they do want to cooperate with the government,” Fahmi told reporters after attending a multi-agency retreat on anti-scam measures.

According to the New Straits Times, Fahmi also said: “Maybe we might take legal action against Facebook. We leave it to MCMC to contact and discuss with them, and give them a chance to prove that they want to work with the government.”

The remarks come amid mounting concern over rising online scam activity in Malaysia and increasing scrutiny of social media platforms accused of facilitating fraudulent advertisements and criminal activity.

Fahmi said MCMC had issued 271,472 requests to various online platforms for the removal of harmful content.

He said 91 per cent of those requests involved online scams and gambling-related material.

“Of that total, 81 per cent of gambling-related cases and 58 per cent of scam-related cases are linked to Facebook,” he said.

Authorities have repeatedly warned that social media platforms remain among the primary channels used by criminal syndicates to target victims through impersonation scams, fake investment schemes and fraudulent commercial offers.

Malaysia loses US$684.6 million to financial scams in 2025

Malaysia’s financial losses linked to scams have continued to escalate sharply over recent years, according to figures presented to Parliament earlier this year.

A written parliamentary reply issued by the Home Ministry on 21 January 2026 stated that the country recorded RM2.77 billion (approximately US$684.6 million) in scam-related losses during 2025 alone.

The figure represented the highest annual loss total recorded within the past three years.

According to the ministry, cumulative losses from online and financial scams between 2023 and 2025 reached RM5.62 billion.

The ministry said scam losses totalled RM1.28 billion in 2023 before increasing to RM1.57 billion in 2024.

Losses rose sharply again in 2025.

Authorities described the trend as evidence of an increasingly sophisticated and rapidly evolving criminal threat operating through digital channels.

The Home Ministry told Parliament that scams involving fraudulent phone calls, romance scams, e-commerce fraud, fake financing schemes and non-existent investment opportunities remained among the most common cases reported nationwide.

Authorities said criminal syndicates had become increasingly adaptable and were relying heavily on digital platforms capable of reaching victims quickly across national borders.

Bank Negara Malaysia’s intervention efforts have also intensified amid the rising threat.

Fahmi said the central bank managed to block RM1.2 billion in scam-related transactions over the past year.

He said greater public awareness remained essential in reducing victim numbers.

“We need to raise more awareness about anti-scam measures to inform the rakyat. We should work together and send one clear message to the public. The rakyat should immediately report if they have been scammed,” he said.

Calls for coordinated enforcement

Fahmi praised cooperation between police and MCMC, saying coordinated enforcement remained central to efforts aimed at curbing online fraud.

“If we take coordinated action, we will be able to tackle this issue. We hope all online platforms will cooperate with MCMC,” he said.

The minister also announced plans to establish a new committee involving telecommunications companies, financial institutions, enforcement agencies and regulators.

The proposed body would focus on strengthening anti-scam coordination and improving national response systems.

“This is important to ensure the safety of Malaysians when they go online. We will bring this proposal to the cabinet in the coming weeks. If needed, we will also establish a council to address online scams,” Fahmi said.

He added that the committee would also help develop stronger support systems for scam victims while improving overall operational responses.

Singapore regulatory approach

Malaysia’s latest discussions on platform accountability come as Singapore expands legal obligations imposed on technology companies under its anti-scam framework.

In September 2025, Singapore issued a directive to Meta, Facebook’s parent company, under the Online Criminal Harms Act (OCHA), requiring additional safeguards against impersonation scams.

The directive marked the first such order issued under the legislation.

In January 2026, Singapore police expanded the measures by directing Meta to broaden protections covering more government office holders and individuals considered vulnerable to impersonation.

Companies failing to comply with directives issued under the law without reasonable excuse may face fines of up to S$1 million.

During a parliamentary sitting on 27 February 2026, Minister of State for Home Affairs Goh Pei Ming said OCHA granted authorities powers to compel online service providers to disable criminal content linked to scams.

The powers were previously unavailable before the legislation took effect.

“Online service providers have acted on all directions, generally within 24 hours,” Goh said in response to queries from Workers’ Party MP Sylvia Lim.

Goh said more than 150,000 instances of online criminal content had been disrupted since OCHA became operational in 2024.

He added that the legislation also allowed the government to compel platforms to introduce preventive measures, including stricter user verification processes and improved response times to user complaints.

According to Singapore authorities, scams on designated online platforms declined by 36.5 per cent in 2025 following implementation of the measures.

Nevertheless, officials said scammers continued to rely heavily on digital platforms such as Facebook and Carousell, accounting for more than 80 per cent of scam cases recorded during the year.

Singapore authorities also warned that some accounts used in scams were obtained fraudulently, including through individuals surrendering Singpass-verified accounts in exchange for payment.

The Ministry of Home Affairs is currently exploring further legislation aimed at criminalising the supply or acquisition of online accounts used to facilitate scams and related offences.

International scrutiny on Meta

Scrutiny of Meta’s role in scam-related advertising has intensified internationally over the past year.

A Reuters report published in November 2025 cited internal company documents estimating that Facebook, Instagram and WhatsApp could collectively generate as much as US$16 billion, equivalent to around 10 per cent of Meta’s 2024 revenue, from scam or illicit product advertisements.

Meta later disputed the figures, saying the estimates overstated the scale of the issue.