THE country must strengthen consumer protection and trust in digital commerce following a 92 per cent surge in e-commerce fraud cases in the first quarter of 2026 compared with the same period last year, Shopee Malaysia said.
Citing statistics from the Bukit Aman Commercial Crime Investigation Department (CCID), Shopee Malaysia Head of Public Affairs and External Relations Nik Emir Din said fraudsters were constantly refining their tactics, requiring platforms and authorities to remain equally vigilant.
"For that reason, trust cannot be built through a single initiative or technological upgrade alone, but must instead be continuously nurtured through investment in systems, protective measures, and cooperation to create a safe and reliable digital environment," he said in a statement today.
Nik Emir said even a single fraudulent transaction could damage confidence not only in an individual platform but in digital commerce more broadly.
He said consumers who felt adequately protected would be more confident in participating in online commerce, while businesses would have greater incentive to invest in digital channels.
He called for a multi-layered approach combining technology, platform governance, consumer education and closer cooperation between the Government and industry.
"Shopee became the first platform in the market to introduce an escrow solution through Shopee Guarantee, where payment to the seller is only released after the buyer is satisfied with the order received. That protection was later integrated into the return policy," he said.
"Every new seller on the platform is also required to undergo a Know Your Customer (KYC) verification process to enhance accountability."
He said artificial intelligence was deployed alongside moderation and investigation teams to identify suspicious behaviour and take action against accounts or listings that breached platform policies.
Secure payment mechanisms, buyer protection and dispute resolution processes also provided additional safeguards throughout online transactions, he added.
However, Nik Emir said technology alone could not eliminate fraud, stressing the importance of equipping consumers with the knowledge to identify potential risks, make informed decisions and report suspicious activities.
Shopee provides consumer and seller resources through its Help Centre, Seller Education Hub and Shopee University, as well as in-app reminders and social media content.
The platform also runs the Jom Beli Selamat initiative in collaboration with the Ministry of Domestic Trade and Cost of Living (KPDN) and the Royal Malaysia Police (PDRM).
Nik Emir said Government agencies, law enforcement bodies, industry players and digital platforms must continue working together to strengthen regulations, combat online crime, share intelligence and improve consumer safeguards.
"Trust is not merely about preventing fraud; rather, it reassures the public to participate in the digital economy, provides certainty for businesses to invest and innovate, and enables digital trade to continue opening up opportunities for communities across Malaysia," he added. - August 17, 2026
