Kota Kinabalu: The Liberal Democratic Party (LDP) has called on the Federal Government to take immediate and decisive action to address the escalating threat of artificial intelligence (AI)-driven scams, warning that the issue poses a serious risk to national security, public trust and the country’s digital economy.
LDP Information Chief Nicholas Ban said AI-generated deepfakes, which manipulate video, audio and images to impersonate public figures, are now a central tool used by scammers to deceive the public.
“These scams have not only defrauded countless Malaysians but have also eroded public confidence in government institutions and national leadership,” he said in a statement on Tuesday.
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“Scammers have gone further, falsely associating respected organisations such as Bank Negara Malaysia, Petronas and MalaysiaKini with fraudulent schemes.
“Even celebrity figures such as Siti Nurhaliza have had their voices and images cloned to mislead the public,” Nicholas said.
According to official statistics, Malaysians have lost at least RM2.11 billion to scams since early 2024, with Nicholas noting that many cases remain unreported.
He called for a full review of the country’s cybercrime legislation. Existing laws which is the Computer Crimes Act 1997 and the Communications and Multimedia Act 1998 are outdated and do not address threats posed by AI impersonation, deepfakes or cryptocurrency-based fraud.
Nicholas urged Parliament to fast-track the drafting and passage of an AI Governance Bill.
“The proposed legislation should define AI-generated fraud, introduce heavy penalties and equip enforcement agencies with clear legal tools to respond swiftly,” he said.
He also recommended strengthening the National Fraud Portal (NFP) and National Scam Response Centre (NSRC) with real-time AI detection tools, predictive analytics and a national ‘kill switch’ system to freeze suspicious accounts and disrupt scam activity instantly.
LDP also called on the Malaysian Communications and Multimedia Commission (MCMC) to move beyond passive monitoring.
“Waiting for public complaints is no longer acceptable. MCMC must actively detect and take down AI-generated scam content before it spreads,” Nicholas said.
The party also proposed nationwide public awareness campaigns, particularly targeting vulnerable groups such as the elderly and rural communities.
“Digital literacy should be taught in schools, workplaces, and community centres to equip Malaysians with the skills to identify and report deepfakes and other forms of digital manipulation,” he added.
On enforcement, LDP urged closer inter-agency coordination between the police (CCID), MCMC, Bank Negara Malaysia, and the Securities Commission, with real-time intelligence sharing and joint operations.
Nicholas also stressed the importance of international cooperation to combat cross-border scam syndicates. He called on the Malaysian Government to collaborate with global cybersecurity bodies and foreign law enforcement to track and prosecute perpetrators operating abroad.
He welcomed the recent passage of the Protection from Scams Act 2025 but said more needs to be done.
“This Act is a good start, but not enough. AI scams are evolving fast and require a broader legal and enforcement framework.
“Parliament must treat this as a matter of national urgency, including convening special sessions if necessary.
“Malaysia cannot afford delay. These scams are not just criminal acts, they threaten public confidence, economic stability, and the future of our digital society,” Nicholas said.