In Part 1, we have discussed the definition of cybercrime and commercial crime. We also see the cases recorded for financial and recorded crime in Malaysia from 2016 until 2021, the total losses due to cybercrime and commercial crime. Lastly, we deep dive into the classification of cybercrime and the number of cases happening in Malaysia. For this part 2, we will investigate the arrests and charges against cybercrime cases.
From 2021 to 2016, PDRM made 35,065 arrests and 23,718 charges. Over the six years, the number of arrests increased year-on-year, with an average of 5,844 arrests per year. The same pattern is also shown in the number of charges, which grows yearly, with 2,897 charges in 2016 to 4,970 in 2021. This indicates that the authorities are doing their best to reduce these online fraud cases in Malaysia.
Source: Commercial Crime Investigation Section (CCIS), March 2022.
For cybercrime from 2015 to March 2022, an investigation paper was opened. The total loss recorded was RM2,575,293,503.85; e-commerce ranked first with 41,303 or 43 per cent, followed by telecommunications fraud (line/sms) with 33,218 or 34 per cent.
While cybercrime involves fake news with 48 investigation papers, protecting personal data with 98 investigation papers and no category with 212 investigation papers is the least reported type of cybercrime.
Source: Commercial Crime Investigation Section (CCIS), March 2022.
If viewed up to March 2022 alone, based on the investigation papers, reported losses amounting to RM124,166,360.00 with telecommunication fraud (line/sms) were the highest with 2,269 cases or 48 per cent. They followed by e-commerce (online purchase) with 2,070 cases or 44 per cent.
Meanwhile, cases involving pornographic material (Section 22 of the Penal Code), intellectual property (CD/VCD/DVD), no categories and personal data protection were the lowest recorded cases, with only three, one, one, and two cases recorded.
In terms of locality for the cybercrime cases, if viewed by state from 2015 to 2021, most cases occurred in major cities such as Selangor with 17,191 cases, followed by Johor with 12,457 cases and Kuala Lumpur with 11,658 cases. At the same time, cybercrime was seen relatively less in towns such as Terengganu, with 3,054 cases, Kelantan, with 2,932 cases and Perlis, with 1,284.
Cybercrime is common in large and rapidly developing cities because it is a hotspot for finding better job opportunities and thus increasing social mobility in their society.
Source: Commercial Crime Investigation Section (CCIS), March 2022.
The same statistics also show that until March 2022, cybercrime cases were widespread in Kuala Lumpur, with 600 cases, Johor with 558 cases and Selangor with 511 cases. These are the three highest states that recorded cybercrime by the state in March 2022.
Meanwhile, Sabah, Kelantan and Perlis were the three states that recorded the least cybercrime by recording 203, 172 and 75 cases.
Source: Commercial Crime Investigation Section (CCIS), March 2022.
In the case of mule accounts or donkey accounts according to bank accounts used from January 2012 until March 2022 showed that these accounts mostly used CIMB Bank Berhad with 32,492 or 27 per cent, followed by Malayan Banking Berhad or Maybank with 36,765 or 31 per cent. Donkey accounts often use These two banks to carry out their operations.
Meanwhile, Agrobank, Affin Bank Berhad and Bank Kerjasama Rakyat are the least used banks to operate this donkey account.
Source: Commercial Crime Investigation Section (CCIS), March 2022.
*The Malay Version of this article is currently under review at e-Jendela Dewan Ekonomi, Dewan Bahasa dan Pustaka, June 2023. Researchers also would like to thank the Criminal Investigation Department (JSJK), Bukit Aman, for providing this data to the authors.
Rashid Ating. Researcher in the Department of Economics, Faculty of Business and Economics, Universiti Malaya and Institute of Advanced Studies (IAS), Universiti Malaya (UM).
