Written by Ng Shi Chen
Globally, there is a growing concern about eCommerce fraud. In Malaysia particularly, the Royal Malaysia Police revealed that a total of 35,368 cybercrime cases involving online scams were reported in 2024. In the first three months of 2025 alone, a total of 12,110 online scam cases involving fake eCommerce offers, bogus loans, and non-existent investment schemes were reported, causing total losses of RM573.7 million.
In Malaysia, protection against eCommerce fraud is found in a plethora of acts, which include but are not limited to the Contracts Act 1950, the Consumer Protection Act 1999 and to some extent the Penal Code. It is important to note that there is no one act that governs this. Valuable lessons can be learnt from other countries that have taken bold and proactive measures to effectively combat eCommerce fraud and promote a safe and trusted online environment.
Singapore
In Singapore, the Technical Reference 76 on Guidelines for Electronic Commerce Transactions (‘TR 76’) was revised in 2022 to include additional anti-scam guidelines for e-retailers and eCommerce marketplaces to enhance consumer protection in online transactions. The anti-scam guidelines recommend that e-marketplaces and e-retailers:
- Conduct due diligence and identity verification against government records and/or with internal business tools and external verifications;
- Implement measures, including suspending or terminating the merchant account, and conducting enhanced identity verification;
- Establish processes and cooperate with regulatory authorities to identify suspicious content and accounts, and proactively remove fraudulent content and accounts;
- Respond promptly to regulatory requests within 24 hours or any stipulated deadline specified in legal orders;
- Facilitate investigations, remediation and tracing of suspicious transactions by developing mechanisms, including chat logs, merchant account details, and device information to maintain records of relevant accounts and transaction.
Australia
In Australia, the Competition and Consumer Act 2010 was amended on 13 February 2025 to establish the Scam Prevention Framework (‘SPF’) to offer better protection to Australian consumers from scams. The SPF defines a scam as an attempt (whether successful or not) to engage an SPF consumer of a regulated service, where it is reasonable to infer that the attempt involves deception, and would, if successful, cause loss or harm. It applies to banks, telecommunications providers, and digital platform service providers. The SPF establishes six general principle-based obligations:
- Prevent: Take reasonable steps to prevent scam activities from affecting the consumers, including introducing robust systems and procedures to prevent scammers from accessing the platform for fraudulent purposes and ensuring thorough education of employees and consumers;
- Detect: Take reasonable steps to detect scams, including identifying the consumers who may be affected by scams in a timely manner, and detecting scams;
- Report: Report and share information about possible detected scam activities with the Australian Competition and Consumer Commission (ACCC);
- Disrupt: Take reasonable steps to disrupt suspected scams to prevent losses to the consumers;
- Respond: Have an accessible internal dispute resolution mechanism for the consumers to make complaints about scams, and participate in an external dispute resolution scheme, with Australian Financial Complaints Authority serving as the scheme for the initial sectors under the SPF; and
- Governance: Develop and implement governance policies and procedures to combat scams, ensuring they are properly documented and adaptable to evolving scam risks.
Regulatory Response: ACCC’s Warning to E-Commerce and Social Media Platforms
Australia has taken action against the rise of online ghost stores. On 3 July 2025, the ACCC warned Shopify and Meta to address the proliferation of online ghost stores that misrepresent themselves as legitimate local businesses. The ACCC identified over 140 ghost stores, many of which engage in fraudulent practices such as fake sales and substandard products, often targeting Australian consumers through false advertising. The ACCC urged the e-commerce and social media platforms to take proactive measures to prevent the emergence of online ghost stores.
Conclusion
Despite existing laws addressing e-commerce fraud, it is recommended that Malaysia develop specific guidelines or frameworks, similar to the approaches adopted in Singapore and Australia, to more effectively address the challenges arising from e-commerce fraud.
Published on 14 November 2025