How Malaysia Can Navigate Ai Crime Risks

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The rise of artificial intelligence (AI) has been a double-edged sword, offering remarkable advancements while simultaneously enabling a new breed of criminal activity.
Recent comprehensive reports from the Centre for Emerging Technology and Security (Cetas) and the European Union Agency for Law Enforcement Cooperation (Europol) highlight the growing threat of AI-enabled crime worldwide.
For Malaysia, these developments are more than just distant concerns, as they represent a pressing and immediate challenge that demands attention.
The Cetas report, “AI and Serious Online Crime” (March 2025), paints a stark picture of how criminals are harnessing AI to automate, enhance, and scale illegal activities.
ADSFraud, phishing, the creation and distribution of child sexual abuse material, romance scams, and other cybercrimes are becoming increasingly sophisticated due to AI’s capabilities.
These tools can generate deepfake videos, synthesise convincing voices, and create fake identities at a speed and scale previously unimaginable.
Law enforcement struggling to keep up
This technological leap empowers criminals to exploit human psychology more effectively, fooling victims with synthetic content that appears real.
Europol’s Internet Organised Crime Threat Assessment 2025 corroborates these findings, highlighting AI as a critical enabler of organised crime across Europe and beyond.
The report emphasises that AI is increasingly employed in financial fraud and the distribution of illicit materials like child sexual abuse material.
One of the major concerns raised is the difficulty law enforcement faces in keeping pace with these rapidly evolving technologies. AI-driven crimes are not confined by geography, complicating jurisdictional efforts and requiring international cooperation.
Malaysia is not immune to these global trends. In fact, recent statistics indicate the country is increasingly targeted by AI-facilitated crimes.
The MCMC reported over 35,000 online scam cases in 2024 alone, with total losses exceeding RM1.58 billion.
Deepfakes, synthesised voices, chatbots
While not every case involves AI, the growing sophistication of these scams strongly suggests that AI technologies are being leveraged.
For example, deepfake videos featuring local public figures have been circulated to promote fraudulent investment schemes.
ADSThese videos’ realistic appearance and authentic-sounding voices make it difficult for the public to discern fact from fabrication, leading to substantial financial losses and an erosion of public trust in digital content.
Another troubling development is the use of AI-generated voice cloning in scams. Victims receive phone calls from what sounds like a trusted family member or close acquaintance, only to be deceived into transferring money or revealing sensitive information.
In some cases, AI-driven chatbots simulate ongoing conversations, luring victims into elaborate investment schemes or romance scams.
The scale and speed at which these AI-powered frauds operate overwhelm traditional detection methods, leaving many victims vulnerable.
Steps that can be taken
Law enforcement agencies in Malaysia, such as the police and the MCMC, have made strides in addressing cybercrime.
However, both the Cetas and Europol reports underscore a significant challenge: the pace of AI technological advancement outstrips the ability of many law enforcement bodies to adapt and respond effectively.
Specialised knowledge, tools, and frameworks are urgently needed, but resource constraints and a lack of AI-specific training mean that Malaysian agencies risk falling behind criminals who use these same technologies to their advantage.
To effectively tackle the growing threat of AI-enabled crime, Malaysia must take several strategic steps.
First and foremost, the establishment of a dedicated national AI Crime Taskforce is essential.
This task force would bring together cybersecurity experts, AI technologists, financial crime investigators, and legal professionals to focus exclusively on AI-related criminal activity.
Such a specialised unit would be responsible for staying ahead of emerging AI threats, coordinating investigations, and collaborating with international counterparts to tackle cross-border crimes.
AI-specific training
Secondly, law enforcement agencies must invest in comprehensive training programmes to equip officers with the necessary skills to understand, identify, and counter AI-enabled crimes.
Familiarity with AI tools and the ability to detect AI-generated content, such as deepfakes or voice clones, are critical.
This training should also extend to the legal community, ensuring that prosecutors and judges are well-versed in the complexities of AI-related evidence and the unique challenges these cases present.
Alongside personnel development, Malaysia must bolster its cybersecurity infrastructure.
Robust frameworks and AI-driven security solutions are needed to safeguard critical systems and data from AI-powered cyberattacks. Regular audits and vulnerability assessments should be institutionalised to ensure resilience against evolving threats.
Informing the masses
Public education plays a pivotal role in this fight. Many Malaysians, especially the elderly and less digitally literate, remain vulnerable to AI-driven scams because they are unaware of how realistic and deceptive AI content can be.
Nationwide awareness campaigns that educate citizens on how to identify deepfakes, suspicious communications, and phishing attempts can serve as the first line of defence, reducing victimisation.
An anti-scam awareness campaign in 2021Finally, international collaboration is indispensable. AI crime, by its very nature, transcends borders, requiring coordinated responses among countries.
Malaysia must strengthen its partnerships with international law enforcement bodies such as Europol and Interpol. Sharing intelligence, best practices, and technological resources will enhance Malaysia’s capability to respond to AI-driven threats and disrupt global crime networks.
Not an impossible task
The stakes are high. The integration of AI into criminal activity threatens not just individual victims but the fabric of trust that underpins digital interactions and commerce.
Without decisive and coordinated action, Malaysia risks becoming a playground for AI-powered fraudsters and scammers, undermining the country’s digital economy and public confidence.
Yet, this challenge is not insurmountable. The insights from Cetas and Europol reports provide a valuable roadmap for Malaysia.
By acting swiftly to establish dedicated AI crime units, upgrading law enforcement capabilities, investing in public awareness, and enhancing international cooperation, Malaysia can turn the tide against AI-enabled crime.
In a nutshell, AI is a technology that can be used for either good or harm. Malaysia’s future in the digital age hinges on how it navigates this new frontier.
The time to prepare, adapt, and respond to AI-driven crime is now. By doing so, Malaysia can safeguard its citizens, protect its digital economy, and foster a secure environment where innovation thrives without exploitation. - Mkini
R PANEIR SELVAM is the principal consultant of Arunachala Research & Consultancy Sdn Bhd, a think tank specialising in strategic national and geopolitical matters.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.

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