Malaysia

Malaysia emerges as lucrative base for transnational scam syndicates, claims NGO

The illegal move follows intensified law enforcement action across the region, according to a prominent anti-trafficking and humanitarian organisation

Updated 4 months ago · Published on 02 Jun 2026 2:26PM

Malaysia emerges as lucrative base for transnational scam syndicates, claims NGO
International scam syndicates previously linked to operations in Myanmar, Cambodia, Laos and Thailand have allegedly begun relocating their activities to Malaysia - June 2, 2026

MALAYSIA is at risk of becoming a new operational hub for transnational scam syndicates displaced by mounting law enforcement pressure elsewhere in Southeast Asia, according to claims made by a leading humanitarian organisation involved in rescuing victims of cross-border fraud networks.

The Malaysian International Humanitarian Organisation (MHO) said it had uncovered evidence suggesting that criminal groups previously operating in notorious scam compounds across Myanmar, Cambodia, Laos and Thailand have established new bases within Malaysia.

MHO secretary-general Datuk Hishamuddin Hashim said the organisation had identified two secret locations believed to be linked to the syndicates, which he claimed have been operating in the country for more than six months.

BH cited Hishamuddin saying that the syndicates are allegedly connected to criminal networks originating from China and have shifted operations as authorities across the region intensify enforcement measures against scam centres and human trafficking activities.

He said the relocation followed a series of international crackdowns, including enforcement actions involving the United States Federal Bureau of Investigation (FBI) and regional authorities targeting scam compounds that have proliferated in recent years.

"Because of that, they have come to Malaysia to avoid detection by the authorities. We will not disclose the locations, but this information will be channelled to the police.

"One thing that is extremely embarrassing is that Malaysia is now being turned into a scammer's haven after we spent years fighting to rescue victims in Myanmar and Cambodia.

"Before foreign parties or international agencies expose this issue and tarnish the country's reputation, it is better that we reveal it ourselves first," he said.

Hishamuddin made the remarks during a press conference attended by family members of victims as well as former workers who had previously been employed by scam syndicates operating in Thailand, Laos, Myanmar, Cambodia and Dubai.

The warning comes amid growing regional concern over the migration of organised cybercrime groups as authorities tighten controls on large-scale scam operations that have exploited thousands of workers through deceptive recruitment schemes and forced labour practices.

Hishamuddin urged members of the public to come forward with information regarding suspicious compounds, unusual business premises or questionable recruitment activities involving either local or foreign workers.

He said MHO would guarantee the safety and confidentiality of any whistleblowers willing to assist investigations.

The allegations also follow recent enforcement action against fraud-related operations within Malaysia.

In February, police raided a premises in Taman Sungai Abong, Muar, arresting eight individuals suspected of operating a fraudulent call centre offering non-existent personal loans.

Investigators found the syndicate had allegedly used scripted conversations while impersonating representatives of financial institutions and lending companies to deceive victims through telephone calls and social media platforms.

Subsequent investigations by the Muar District Police Headquarters led to the arrest of a further 12 suspects across several states believed to be connected to the operation.

Authorities said those detained were linked to a range of criminal activities, including phone scams, fraudulent purchases conducted through e-commerce platforms and the misuse of bank accounts, with total reported losses exceeding RM190,000.

The latest claims are likely to intensify scrutiny of Malaysia's role in the regional fight against organised cybercrime, particularly as governments across Southeast Asia seek to dismantle scam networks that have increasingly shifted operations across borders in response to enforcement pressure. - June 2, 2026

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