Urgent AI Laws Needed as Fraud-Related Crimes Surge to RM5 Billion Losses

Urgent Call for AI Legislation to Address Fraud-Related Crimes

SHAH ALAM – The rapid rise of artificial intelligence (AI) technology has led to a surge in fraud-related crimes, prompting calls for specific AI legislation. Datuk Wilson Ugak Kumbong, Malaysia’s Deputy Digital Minister, highlighted the urgent need for legal frameworks to control AI misuse and impose clear penalties.

Between 2020 and 2024, AI-related criminal activities have caused an estimated global financial loss of around RM5 billion. This alarming figure underscores the growing threat posed by AI-enabled fraud.

Legislation Expected This Year

Datuk Wilson Ugak Kumbong expressed hope that the proposed AI legislation would be tabled within the year. The goal is to establish tighter controls and define appropriate legal consequences for those exploiting AI technologies for illicit purposes.

Speaking at the Gawai Kitai Ngiling Bidai 2025 celebration on June 28, he emphasized the importance of swift legislative action to curb the misuse of AI.

Recent Incidents Involving Public Figures

The Deputy Minister addressed concerns about AI-generated fake videos involving high-ranking officials. Former Inspector-General of Police Tan Sri Acryl Sani Abdullah Sani and Johor police chief Datuk M. Kumar were subjects of viral clips showing individuals resembling them allegedly receiving aid from a person titled "Datuk."

Both officials have denied any involvement in these videos, which appear to be manipulated content. This situation illustrates how AI can be weaponized to spread misinformation and damage reputations.

Public Awareness Campaigns Underway

To combat this issue, the ministry is rolling out awareness campaigns targeting rural populations through the Digital Malaysia Tour programme. The initiative educates communities about the latest fraud tactics and how to recognize AI-based scams.

Datuk Wilson Ugak Kumbong shared that he has personally visited locations such as Sabah, the interior of Kapit in Sarawak, and Penang to engage with rural communities and raise awareness about AI fraud schemes.

Government Response and Next Steps

Digital Minister Gobind Singh Deo has indicated that a comprehensive report on AI regulations and potential legislation will be submitted to his ministry by the end of June. This report aims to provide a foundation for Malaysia’s approach to governing AI technology and mitigating its misuse.

For professionals involved in IT development and legal fields, staying informed about AI legislation developments is critical. Understanding the emerging regulatory landscape will be essential for compliance and risk management.

Those interested in expanding their knowledge about AI tools and legal considerations may find relevant resources on Complete AI Training.