Dr Selvakumar Manickam, an associate professor at Universiti Sains Malaysia, says social media platforms have failed miserably in shielding from the ever-growing threat of online scams. Education and cyber literacy is the most effective way to combat scams and fraud.
SOCIAL media, once considered as a tool for bringing people closer across the globe, has been increasingly weaponised by criminals who exploit its vast reach to perpetrate financial fraud on a massive scale.
This alarming trend has reached crisis levels, with Malaysia being no exception. The borderless nature of these platforms enables scammers to operate with impunity, transcending geographical boundaries and preying on Malaysians from anywhere in the world.
The financial toll of these scams on Malaysians is staggering. Between 2021 and June 2023 alone, RM302mil was lost to online scams on Facebook and Instagram, highlighting the urgency of the situation.
These scams encompass a wide range of deceptive tactics, including fraudulent investment schemes, cryptocurrency scams and phishing, to name a few.
The reported scam cases are only the tip of the iceberg, as many victims remain silent due to shame or the belief that reporting will not make a difference. This official count also excludes the countless near misses where potential victims narrowly escaped falling prey.
Worldwide, scammers exploit the reach and anonymity provided by social media. Nevertheless, Malaysia faces a particularly acute challenge, grappling with an alarming prevalence of online fraud, especially on social media platforms.
This trend aligns with Malaysia’s high Internet and social media usage rates. Malaysians spend an average of eight hours per day online, with roughly three hours dedicated to social media.
This extensive online presence exposes users to heightened risks of encountering fraudulent schemes and malicious actors. This could explain why Malaysia has one of the highest scam cases.
It raises a crucial question: Who is to blame? It is a complex and contentious issue, with responsibility shared among the scammer, the victim and the social media platform.
Scammers are undoubtedly the primary culprits. They prey on vulnerabilities, exploiting trust and ignorance to lure individuals into fraudulent schemes. Their tactics are often sophisticated, using psychological manipulation and social engineering to make their scams appear legitimate and attractive.
Gullibility and greed can play a role in victimisation. Some individuals may be too trusting of online offers, failing to verify the legitimacy of investments or opportunities before committing funds. Others may be lured by promises of quick riches or unrealistic returns, ignoring red flags and warning signs.
Social media platforms invest heavily into algorithms and features aimed at maximising user engagement, keeping them glued to screens for hours on end.
Nevertheless, these platforms have failed miserably in shielding from the ever-growing threat of online scams, including financial scams. This glaring disparity in priorities raises serious concerns about the ethical compass and corporate responsibility of these tech giants.
Several countries, including the United States, the United Kingdom, Australia and Singapore have implemented initiatives to combat online scams, such as educational programmes and national scam agencies.
Malaysia recently introduced the National Scam Response Centre (NSRC). However, despite these efforts, financial scams on social media remain a persistent challenge due to the evolving tactics of scammers and the vastness of the online landscape.
In addition, various countries have begun licensing social media platforms. India’s Information Technology Rules, 2021, mandate that social media platforms appoint grievance and compliance officers and adhere to content removal timelines.
Turkey’s 2020 social media law requires platforms with over a million daily users to have a local representative and comply with content regulations, with non-compliance leading to fines and bandwidth throttling. These initiatives have achieved only limited success.
In Malaysia, MCMC is also considering licensing social media platforms, which could potentially help address online scams. However, concerns about potential overreach and government control exist. A balanced approach could be achieved by establishing clear guidelines outlining platform responsibilities for scam prevention and user protection.
Creating an independent body to oversee the licensing process and ensure fair enforcement would further enhance accountability and transparency.
Taking legal action against social media platforms in Malaysia is a complex and challenging endeavour. Many of these companies are headquartered in the United States, crea-ting jurisdictional hurdles in enforcing Malaysian laws and regulations.
Additionally, these platforms often claim immunity from liability for user-generated content, citing their role as intermediaries rather than content creators.
Even Within the United States, government oversight faces limitations. Section 230 of the Communications Decency Act shields social media platforms from legal responsibility for most user-genera-ted content, while the First Amendment protects their freedom of expression.
Considering the complexity of social media and its legal landscape, empowerment through education and cyber literacy is the most effective way to combat scams and fraud.
Equipping with the knowledge and skills to navigate the digital landscape safely enables identifying red flags, scrutinising suspicious offers, and making informed decisions about online activities.
Cyber literacy initiatives should focus on educating the public about common scam tactics and promoting critical thinking. By raising awareness, can create a more resilient society better equipped to thwart the relentless efforts of scammers.
This article first appeared in Star Biz7 weekly edition.
