RM10.9 Million Returned to Investment Scam Victims by NSRC

Malaysia's war against online fraud is yielding incremental progress, but the numbers tell a sobering story. Since its establishment in 2022, the National Scam Response Centre (NSRC) has successfully intercepted RM32.49 million in funds linked to scam syndicates, of which only RM10.9 million has been returned to victims through the courts. Against a backdrop of ballooning national losses that reached RM2.97 billion in 2025 alone, the recovered sum represents a fraction of what has been stolen from ordinary Malaysians.

The figures were disclosed by the Home Ministry in a written parliamentary reply in response to a question from Datuk Seri Dr Ronald Kiandee, the Member of Parliament for Beluran, who sought clarity on fraud loss trends, victim recovery rates, and the government's enforcement strategy. The ministry's response painted a picture of an adversary that is growing faster than the mechanisms designed to contain it.

According to data tabled in the Dewan Rakyat, total losses to online fraud climbed from RM1.57 billion in 2024 to RM2.97 billion in 2025, a near doubling within a single year. In the first five months of 2026 alone, Malaysians had already lost RM830 million to various online fraud schemes. Non-existent investment scams consistently accounted for the largest share, recording RM848.62 million in losses in 2024, surging to RM1.46 billion in 2025, and reaching RM361.63 million between January and May of this year.

Telecommunications fraud followed closely, registering losses of RM497.12 million in 2024, RM802.47 million in 2025, and RM235.63 million as of May 2026. Love scams, while comparatively smaller in scale, sustained a steady toll on victims, with losses of RM45.87 million in 2024, RM47.44 million in 2025, and RM17.76 million so far this year.

Geographically, Selangor emerged as the state bearing the heaviest financial burden, with losses leaping from RM446.16 million in 2024 to RM986.79 million in 2025. Kuala Lumpur followed, climbing from RM293.30 million to RM782.86 million over the same period. States such as Johor, Penang, and Perak also recorded significant year on year increases, while Sabah and Sarawak collectively exceeded RM110 million in losses in 2025.

Despite the scale of the crisis, officials pointed to measurable improvements in how effectively seized funds are being returned. Between 2022 and 2025, the NSRC froze RM25.2 million, returning just 29 percent, or RM7.3 million, to victims. In the first five months of 2026, however, the recovery rate climbed to 49 percent, with RM3.57 million returned out of RM7.25 million seized. The ministry described this as evidence that the NSRC is becoming more operationally effective and is gaining greater public trust.

The NSRC functions as a one stop national command centre for scam reporting, working in close coordination with the Royal Malaysia Police, Bank Negara Malaysia, and commercial financial institutions to freeze accounts and block suspicious transactions before stolen funds can be dispersed through layered transfers.

The trajectory of losses, nevertheless, underscores the limits of a reactive enforcement model in the face of increasingly sophisticated fraud networks. Authorities have warned that late reporting dramatically reduces recovery prospects. Victims are strongly encouraged to contact the NSRC hotline at 997 immediately upon discovering a scam, as the probability of recovering funds diminishes sharply beyond a 24-hour window.

For Malaysian investors and the general public, these figures serve as a stark reminder that the threat of online fraud is not abstract. From Penang to Johor Bahru, no state has been spared. Financial vigilance, prompt reporting, and the habit of verifying investment schemes through platforms such as the Securities Commission's official alert list remain the most immediate and practical lines of personal defence.