The Surge of Phone Scams in Malaysia
Malaysia is grappling with an epidemic of spam and scam phone calls, which have skyrocketed in recent years. In 2024 alone, Malaysians were bombarded by 2.98 million scam calls, a shocking 82.8% increase from the 1.63 million scam calls recorded the previous year . Financial losses have risen in tandem, Malaysians lost RM1.57 billion to scams in 2024, up from RM1.22 billion in 2023 . These calls are not mere annoyances; they often impersonate banks, police, or government officials to trick victims, and increasingly even leverage technology like AI-driven “deepfake” voices and videos of public figures to lend credibility to their fraud . The situation is so severe that authorities consider it a national security concern, as organised scam syndicates prey on citizens and siphon billions from the economy.
Public awareness campaigns, such as the National Scam Awareness Campaign in Kuala Lumpur (2023), highlight the rampant phone scam problem. Telephone providers are now stepping up as gatekeepers to protect users.
How Scammers Exploit Telecom Services
Modern telephony technologies, like Voice-over-IP and digital phone lines, have unfortunately given scammers new tools to mask their identity. For example, scammers often obtain Direct Inward Dialing (DID) numbers local Malaysian phone numbers provided by telecom services to make their calls appear local even if they originate from overseas. By masking their true origin, a fraudster in another country can appear to be calling from a Kuala Lumpur or Johor number, lowering the victim’s guard. Some syndicates also abuse SIP trunks (Session Initiation Protocol trunks), which are internet-based calling pipelines, to blast out thousands of calls cheaply and quickly. They may even spoof caller IDs, making the incoming call display the number of a legitimate entity (like a bank hotline or a police station) when in reality the call is from a scammer. This tactic of impersonation is rampant, in fact, over 22% of reported scam calls in 2024 involved scammers pretending to be authorities or businesses .
Scammers use various tricks to identify and target potential victims. One common technique is the “dead air” call: an automated dialler calls a list of numbers and, if you answer, you hear nothing, this is used to verify active numbers. As security experts note, dead-air calls are often a first wave used to flag responsive targets for the next stage of the scam . Other calls may play recorded messages claiming, for instance, that “you have an overdue bill” or “your bank account is compromised,” coercing the receiver to press a number and connect to a fake agent. SMS texts are also used, with nearly 45% of scam SMS in Malaysia related to gambling or fake investments . In short, scammers exploit every available telecommunication channel mobile, landline, SMS, even WhatsApp to reach victims. This puts the onus on telephone service providers to shut down these vectors of attack and not allow their networks to be misused.
Vetting Customers Before Providing Call Facilities
One of the most powerful ways telecom providers can curb scams is by vetting their customers rigorously before granting them calling services such as SIP trunks or DID numbers. Know-Your-Customer (KYC) practices, common in banking, are increasingly crucial in telecommunications. This means providers like ORENCloud and others should verify the identity and legitimacy of individuals or businesses seeking to use their voice services. For instance, requiring valid identification, business registration documents, and even information on the intended usage of bulk call services can help ensure that only reputable, lawful customers get access. In Malaysia, all telcos (including VoIP and cloud telephony providers) must be licensed by the Malaysian Communications and Multimedia Commission (MCMC), and they are bound to comply with regulations and the Personal Data Protection Act . Part of that compliance is ensuring that services are not used for illegal activities, effectively, no anonymous or pseudonymous accounts making untraceable calls.
Proper vetting thwarts scammers in several ways. First, scam operations often rely on easily obtained phone lines or SIM cards registered under false or stolen identities. By imposing stricter onboarding checks, providers can weed out applicants who cannot verify who they are or who use front companies as a cover. Second, vetted information creates a paper trail, if a number is later reported for scam activity, law enforcement can quickly trace it back to the registered account holder. This accountability alone acts as a deterrent; scammers will avoid providers known for strict vetting and move on to lax ones. SIM card registration for mobile phones (requiring MyKad or passport verification) has long been mandatory in Malaysia, now the same principle is being applied to VoIP and cloud telephony services. ORENCloud, for example, is a licensed provider that emphasizes compliance and could require clients to sign anti-fraud agreements and provide IDs before activating high-volume calling capabilities. This “trust but verify” approach ensures that telecom companies know who is using their lines, making it far riskier for scam syndicates to infiltrate the system.
Strict Anti-Spam Policies and Enforcement
Vetting at sign-up is just the first step. Equally important is ongoing enforcement of anti-spam and anti-fraud policies. Responsible service providers maintain strict rules against using their network for any form of spam calls, robo-dialing, or fraud. ORENCloud, for instance, has an explicit Anti-Fraud Policy that “strictly prohibits the use of its services” for spam or deceitful practices. They forbid any unsolicited robocalls without consent and make caller ID spoofing strictly prohibited on their platform . In practice, this means a customer of ORENCloud cannot mask their outbound number as someone else’s, a common tactic of scammers, because the system and policies won’t allow it. Likewise, other major telcos have “fair usage” and anti-spam terms in place, with violations leading to immediate termination of service.
Enforcement goes hand-in-hand with policy. Active monitoring is employed by providers to catch suspicious activity in real time. ORENCloud notes that it uses advanced monitoring techniques to identify and prevent spam and fraudulent activities across calls, SMS, and other channels . Such monitoring can include automated alerts if an account suddenly blasts out an abnormally high number of calls or if it sequentially dials hundreds of different numbers patterns typical of scam call operations. Many providers also implement rate limits or caps on new accounts, so they cannot instantly make thousands of calls until they’ve established a trustworthy history. If an account is flagged for potential spam/scam behaviour, the provider can investigate and freeze or shut it down swiftly, before too many victims are called.
Importantly, telecom companies are moving toward a zero-tolerance stance on spoofing and spam. By cutting off service for violators and even reporting them to authorities, providers send a strong message. The industry understands that allowing spam calls not only harms the public but also damages the reputation of the telecom networks. No one wants their network to be known as a haven for scammers. Thus, enforcement of anti-spam policies protects both the consumers and the integrity of the provider.
Technology Safeguards: Stopping Scams with Innovation
Technology is a critical ally in the fight against scam calls. Telecom providers in Malaysia are increasingly investing in smart systems that can detect and block scam calls before they reach the end user. One such approach is deploying anomaly detection engines on calling patterns. For example, ORENCloud offers an option to enable an engine that monitors for unusual call patterns and can automatically block calls showing abnormal behaviour or blacklisted destinations . This means if a scammer tries to use a SIP trunk to call hundreds of people per minute or dial out to premium-rate numbers in bulk (a common fraud technique), the system will flag and stop those calls in their tracks. Such real-time analytics, often powered by AI, help providers differentiate legitimate traffic from likely scam traffic. In fact, AI and machine learning are being explored to analyze call metadata (frequency, duration, destination, etc.) and even audio characteristics to predict scam calls . These tools get smarter over time by learning the tell-tale signs of scams versus normal business calls.
Another technological safeguard is enhancing caller ID verification. A big reason phone scams succeed is that criminals can spoof the caller identity but new frameworks (like the STIR/SHAKEN protocol used in some countries) digitally verify calling numbers. Malaysian providers are looking into similar solutions to ensure that the number showing up on your phone is the true origin. While full implementation may take time, even now providers often restrict outbound caller ID to numbers that are assigned to the customer. For instance, if a business customer has a DID number 03-XXXX1234, the system will only allow that number (or a verified range) to appear as caller ID for their calls, preventing any arbitrary spoofing of, say, a police hotline number. By eliminating caller ID spoofing, telecom companies greatly reduce scammers’ ability to impersonate trusted organisations.
Providers have also started offering scam blocking services to consumers. Some mobile operators worldwide label incoming calls with warnings like “Spam Likely” or allow users to opt-in to block all international calls, since many scams originate abroad. In Singapore, for example, carriers gave users the option to block all overseas calls if they don’t expect any, cutting off a major scam channel . In Malaysia, a similar concept could be applied: customers might choose to reject any call with a “+” country code prefix, or carriers could play an alert when an international call comes through. Additionally, telecom providers partner with app developers of call-filtering apps (like Truecaller or Whoscall). Notably, the Royal Malaysia Police (PDRM) has a partnership with the Whoscall app to share a database of verified scam numbers, allowing Whoscall’s AI-powered system to warn users if a known scammer is calling . This kind of collaboration between providers, law enforcement, and tech companies means a scam number blocked on one platform can quickly be flagged everywhere. The end goal is an ecosystem where legitimate calls get through, but fraudulent ones are identified and weeded out by multiple layers of defence.
Collaboration with Authorities and Industry Peers
No single entity can fight the scam call menace alone, it requires a concerted team effort. Malaysian telephone service providers are working closely with government authorities and even with each other to form a united front against scammers. The Communications Ministry and MCMC have been aggressive in this area: since 2022, authorities (in conjunction with telecom companies) have blocked over 2.1 billion suspicious calls and SMS messages identified as scam-related . Such massive blocking efforts are only possible when telecom operators share information on scam call patterns and swiftly implement regulators’ directives to shut down those numbers or messages. Providers regularly receive from MCMC or police a list of phone numbers or sender IDs linked to scams, and are expected to bar them from the network. This rapid response prevents scammers from reusing the same numbers to victimise more people.
Industry-wide initiatives have also been established. Major telcos like CelcomDigi, Maxis, and Telekom Malaysia have joined forces in the National Anti-Scam Action Coalition, launched with support from the Ministry of Communications . This coalition brings together telecom companies, CyberSecurity Malaysia, law enforcement, banks, and even universities to improve data sharing and educate the public about scams. As part of these efforts, CelcomDigi in 2024 conducted a National Scam Awareness Survey to gather insights on consumer exposure to scams . They also participate in nationwide scam awareness roadshows, highlighting common tactics and how the telcos are combatting them. By collaborating instead of acting in silos, service providers can present a unified defense, for instance, if one carrier spots a new scam technique, it can alert others through the coalition so everyone can be on guard.
Crucially, telecom providers coordinate with the police and the newly established National Scam Response Center (NSRC). The NSRC, led by the Royal Malaysia Police, serves as a central hub for quick action on scams and coordination among agencies . If a scam call is reported through NSRC’s hotline, the center can reach out to the relevant telco to trace the number and suspend it while an investigation is launched. This rapid coordination can sometimes even help intercept scammers in real-time or freeze stolen funds by notifying banks. Providers like ORENCloud, being smaller but agile, can respond quickly to any law enforcement request to shut down suspicious lines, reflecting their commitment to public safety. Meanwhile, larger telcos have dedicated fraud management teams liaising with authorities daily.
Another aspect of collaboration is data protection. Large-scale leaks of personal data (which Malaysia unfortunately has seen, with the highest rate of personal data leaks among key Asian countries ) fuel phone scams by giving scammers the info needed to sound convincing. Telecom companies hold a treasure trove of customer data, so they have a duty to guard it zealously. Companies like CelcomDigi emphasize internal protocols to safeguard customer information aligning all staff to strict privacy practices and never selling data to unverified third parties . By preventing data breaches and quickly reporting any that occur, providers can choke off one of the scammers’ lifelines (access to personal details). In short, through public-private partnerships, data sharing, and a security-first mindset, telecom providers are working hand-in-hand with the government to dismantle scam networks and protect Malaysians.
Protecting Citizens and the Nation
Ultimately, strengthening the defenses against scam calls is about protecting the rakyat the people and by extension, Malaysia’s national security and economic well-being. Phone scams might seem like a personal problem for those affected, but their aggregate impact is national in scale. From 2021 up to April 2024, Malaysians have lost an estimated RM3.18 billion to online and phone scams involving nearly 100,000 victims . Each scam not only causes individual suffering (financial loss, emotional trauma) but also chips away at public trust in the communications system. If left unchecked, scam call operations (often run by international syndicates) could undermine confidence in legitimate phone communications citizens might start ignoring all unknown calls, which affects businesses and government outreach too. There have even been cases of victims falling into such despair after being scammed that it affects their health or livelihood, which shows how deeply these crimes can cut.
By vetting customers, enforcing anti-scam policies, and deploying cutting-edge blocking technologies, telephone service providers become the front-line defenders for millions of Malaysians each day. Every suspicious call they block, every scam account they shut down, is a potential victim saved from harm. There’s also a broader national security dimension: organised scam call centers have been linked to other crimes such as money laundering, financing of illicit activities, and cross-border syndicates. Clamping down on them makes Malaysia less attractive to such criminal enterprises. It also aligns with the government’s push for a safer digital ecosystem under initiatives like the NSRC and new laws (for example, Malaysia amended the law in late 2024 to criminalize the act of sending fake content with fraudulent intent ). Telecom providers that diligently monitor and report scam activities contribute vital intelligence to security agencies trying to dismantle these syndicates.
Equally important is the role providers play in educating the public and maintaining open channels of communication about scams. Many companies regularly send out SMS or e-mail alerts to their subscribers about current scam tactics (“Beware of calls claiming to be police asking for money” etc.) and advise on how to verify calls. Some have even integrated warnings when certain numbers call, or they guide users to install call-blocker apps. The idea is to empower users while the providers do their part in the background. It’s a dual approach: top-down filtering and bottom-up vigilance. When Malaysians see their telecom operator actively caring about their safety by taking concrete steps to reduce scam calls it builds trust. This trust is fundamental for a digital nation where people can confidently use phones and online services without constant fear of swindlers lurking on the line.
Conclusion: A United Front Against Scam Calls
The fight against spam and scam calls in Malaysia is far from over, but progress is being made on multiple fronts. Telephone service providers like ORENCloud and others are rising to the challenge by scrutinizing who they do business with, investing in smarter security tech, and upholding strict anti-spam ethics. By vetting customers, verifying caller identities, and monitoring call traffic for abuse, these companies are effectively plugging the holes that scammers have long exploited. Backed by government initiatives and inter-provider cooperation, the telecom industry is transforming itself into a robust first line of defense for citizens. Each blocked scam call, each prevented fraud attempt, is a step toward eradicating the scourge of phone scams.
For the average Malaysian, these efforts mean fewer dangerous calls to worry about and more confidence that when the phone rings, it’s likely a legitimate caller. For the nation, it means bolstering security and protecting the wealth and peace of mind of its people. Stopping scam calls at the source before they reach vulnerable victims is the ultimate goal. With telecom providers, regulators, and the public working together, we inch closer to that goal every day. In the end, a safer phone network translates to a safer nation, where technology can be embraced without fear. The message is clear: Malaysia’s telecom industry is on guard, and scammers are increasingly on notice. Through vigilance, innovation, and unity, we can dramatically reduce spam and scam calls, securing our connections for the benefit of all.
Sources: The statistics and initiatives mentioned are backed by recent reports and official statements. A 2024 annual report highlighted the 82.8% surge in scam calls and RM1.57 billion in losses . Malaysian police and tech firms note the use of AI and data leaks in evolving scam tactics . ORENCloud’s official policies demonstrate the industry’s commitment to blocking spoofing and fraud on their networks , while tech solutions like anomaly detection are already in place . Government and industry collaboration is evidenced by billions of blocked scam attempts and joint coalitions , as well as the central role of the NSRC for rapid response . These collective efforts form the backbone of Malaysia’s strategy to eliminate scam calls and protect its citizens.
