MCMC proposes penalties for online platforms to prevent fraud

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Online platforms should be made financially liable should scams occur, according to Malaysian Communications and Multimedia Commission (MCMC) member Derek Fernandez. He reportedly made these comments at a meeting of online network regulators in Thailand, according to The Star.

Such online platforms include social media networks and messaging services where users can create anonymous accounts and use their platforms to scam others.

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As reported by The Star, Fernandez claimed that anonymous scammers are able to get away with the crime as they are unidentifiable. The MCMC member also reportedly pushed for a radical change in approach to ensure that anyone who accesses a network facility must be identified. This is especially more pressing when a crime has been committed so that victims can take legal actions against the scammer.

Fernandez added that governments must make it law that anyone who communicates with others on online platforms must disclose their identity and that service providers must authenticate these users, according to The Star.

The MCMC member reportedly proposed measures for prevention in a paper titled “New Regulatory Challenges from OTT and AI – A Question of Digital Sovereignty”.

Some of these proposed measures include holding service providers financially liable and compensating victims of fraud, as well as ensuring that a strong proof of identity is required when registering for online platforms.

This could look like the registration of SIM cards or adopting a strict 'know your customer' policy by service providers, said Fernandez according to The Star.

Other proposed measures were to have online platforms registered, licensed and comply with national laws, and for fines and penalties against platform operators be enforced globally.

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This is just one of MCMC's many efforts in curbing online fraud. In June this year, instant messaging platform Telegram agreed to co-operate with the MCMC and the country’s enforcement authorities to curb cyber fraud, according to a statement by Minister Fahmi Fadzil seen by A+M.

In the statement, Minister Fahmi Fadzil shared that Telegram has been an alarming source of criminal cases such as fake investment fraud, paedophilia and pornography to name a few.

Fahmi has also noted that the total losses incurred by Malaysians from January 2020 to May 2023 from various fraudulent activities on Telegram has amounted to RM45 million. He reiterated his firm view that messaging and social media platforms are to adhere by Malaysian laws.

In a townhall reported by Astro Awani, seen by A+M, Fahmi said that the issue is “not only about scammers, but also pornography and extremism which need to be checked urgently if they are spread through Telegram.”

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