Fighting scammers with AI and data: How Budget 2027 is sharpening Malaysia’s cybercrime defences

Budget 2027 introduces initiatives to combat online scams, strengthen the detection of child sexual exploitation and promote internet safety in schools. — Picture by Raymond Manuel

By Soo Wern Jun

First Published: Monday, 09 Nov 2026 7:00 AM MYT

KUALA LUMPUR, Nov 9 — A message arrives offering an investment opportunity that sounds too good to miss.

The recipient is directed to a website or online group where supposed investors share screenshots of their profits and testimonials about how much they have earned.

Convinced that the opportunity is legitimate, the recipient is asked to register, transfer money into a bank account and act quickly before the offer closes.

By the time doubt sets in, the money may already be gone.

Such scams are among the online threats that can catch people off guard, often relying on convincing messages, fabricated testimonials and pressure to make quick decisions.

Budget 2027 introduces three initiatives aimed at addressing online threats: an artificial intelligence (AI) application developed by the National Scam Response Centre (NSRC), an upgrade to the police’s system for detecting child exploitation, and an expanded internet safety campaign in schools.

How will these initiatives help protect Malaysians from online threats?

A new AI application to check before you pay

Under Budget 2027, the NSRC will develop an AI application that allows users to check suspicious phone numbers, bank accounts and links before making a transaction.

The initiative is intended to help Malaysians identify potential scams before transferring money or clicking on potentially harmful links.

In a statement published by the National Security Council on October 12, Home Minister Datuk Seri Saifuddin Nasution Ismail said the application would help the public carry out preliminary checks and reduce their risk of falling victim to digital fraud.

The proposed application will add another public-facing tool to Malaysia’s existing anti-scam efforts.

The Royal Malaysia Police (PDRM) already operates Semak Mule, which allows the public to check whether bank accounts, telephone numbers and company names have been associated with reported commercial crimes.

The NSRC also has an existing National Fraud Portal (NFP), which helps authorities and financial institutions speed up fund tracking and the detection of mule accounts through data integration and predictive analytics.

In February 2026, Deputy Home Minister Datuk Seri Dr Shamsul Anuar Nasarah said the centre received 19,438 online scam-related calls in January, with RM2.408 billion in victims’ funds successfully frozen before they could be siphoned off.

Of that amount, RM321.3 million, or 13 per cent, was returned to victims.

How can you check whether a phone number or bank account is linked to a scam?

The application is intended to help users identify potential risks, although its results should not be treated as a guarantee that a transaction is safe.

There are also existing tools that can help consumers check for potential scams and complement the proposed NSRC application, but they perform different checks.

Bank Negara Malaysia’s (BNM) Financial Consumer Alert List identifies entities or schemes that may have been wrongly represented as licensed or regulated, while the Securities Commission (SC) Malaysia’s Investor Alert List flags unauthorised entities and individuals.

The BNM and SC tools help consumers check whether a financial institution, investment company or scheme has been flagged by the regulators.

However, both regulators caution that their lists are not exhaustive, meaning that an entity or scheme not appearing on the lists is not necessarily legitimate.

The government has also advised that anyone who has fallen victim to a financial scam should immediately contact their bank or the NSRC through its 997 hotline.

BNM also advises victims to lodge a police report.

Detecting online crimes against children

Budget 2027 also provides for the PDRM’s D11 division to enhance the Malaysia Internet Crime Against Children system with advanced analytics capabilities.

The upgrade aims to strengthen police capabilities in identifying perpetrators and uncovering networks involved in child sexual exploitation.

In a statement following the Budget announcement on October 9, Inspector-General of Police Tan Sri Mohd Khalid Ismail welcomed the initiative, saying the measures could strengthen the detection of online scams and improve protection for children against sexual exploitation.

How will the Safe Internet Campaign protect children?

Alongside the police system upgrade, the Malaysian Communications and Multimedia Commission (MCMC) will intensify the implementation of its Safe Internet Campaign in all schools, with a focus on tackling cyberbullying and child exploitation.

The campaign aims to raise awareness of online risks among pupils and encourage safer internet use, particularly as children face harmful behaviour and exploitation on digital platforms.

How do the three initiatives work together?

The three measures announced under Budget 2027 address different aspects of online safety.

Together, these initiatives combine public-facing scam checks, stronger investigative capabilities and online safety education as part of the government’s efforts to tackle digital crime.