KUALA LUMPUR, March 4 — The new law regarding procedures and enforcement of the “kill switch” to improve digital security will also take into account strict action against negligent parties in dealing with online fraud, including financial institutions.

Deputy Minister in the Prime Minister’s Department (Legal and Institutional Reform) M. Kulasegaran said banks need to be responsible and should take action in the event of an online fraud involving their negligence.

“The new law that is being studied will include all these matters,” he said during the question and answer session at the Dewan Rakyat today.

He was responding to a supplementary question from Khoo Poay Tiong (PH-Kota Melaka) regarding the matter.


Last Tuesday, the Minister in the Prime Minister’s Department (Legal and Institutional Reforms) Datuk Seri Azalina Othman Said said the government is drafting a new law that includes provisions regarding procedures and enforcement of the automatic “kill switch” for fraudulent activities on online platforms.

Responding to the original question from Siti Mastura Muhammad (PN-Kepala Batas) regarding losses incurred due to scammers from 2020 to 2023, Kulasegaran said a total of 107,716 cases of online fraud with losses estimated to be worth RM3.2 billion were reported nationwide for the period.

The government, he said, is taking comprehensive measures to combat the crime.


“It includes the establishment of a National Scam Response Centre (NSRC) to take comprehensive enforcement action to combat online financial fraud including rapid response in tracing the funds.

“In addition, the NSRC through the Malaysian Communications and Multimedia Commission (MCMC) and assisted by the telecommunications industry, will also be able to identify the phone numbers used in the conduct of this fraudulent offence by taking action to block and terminate the service of the phone number,” he said. — Bernama