PETALING JAYA: Two British nationals who ran an international investment scam syndicate and cheated victims of over RM600,000 were jailed for six months and fined a total of RM320,000.
Last month, eight people who ran a non-existent job scam syndicate were fined RM6,000 each, with no jail term.
With many getting away with such lenient penalties, scam syndicates have been emboldened to cheat Malaysians of hundreds of millions of ringgit every year.
While scam suspects can be charged under laws such as the Penal Code, Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613), prosecution often ends with very light punishment.
Criminologist Datuk Dr P. Sundramoorthy of Universiti Sains Malaysia said scam activities will increase if the punishment does not match the severity of the crime, which can cause major financial losses and emotional harm to victims.
“If they get high returns with minimal punishment, scammers will be motivated to continue their activities or even take them to greater heights.
“Severe punishment is needed to serve as a stronger deterrent,” he said.
However, he said the mere existence of severe penalties on the books was insufficient if they are not enforced.
“It is crucial to not only impose harsher penalties but also strengthen enforcement mechanisms,” said Sundramoorthy.
Criminal lawyer KA Ramu said enforcement should strike scam criminals where it “hurts the most” by impounding and forfeiting their ill-gotten assets and funds.
“With the alarming rise in scam cases, they should be treated as seriously as drug-related crimes. Impounding of assets should be carried out swiftly, even before the suspects are charged.
“There should be special courts to speedily authorise the freezing of these assets.
“Forfeiture can be decided later but their assets must be impounded first. Although sterner punishments serve as a deterrent, forfeiting their assets may prove to be more effective. As we know, money is all they are after.
“Taking that away will send out a strong message,” said Ramu.
Otherwise, he said, the criminals would know they need to spend a few years in prison but can come out to enjoy the tens of millions they stashed away,” said the lawyer who specialises in narcotics crime cases.
Bayan Baru MP Sim Tze Tzin said that apart from enhancing punishment, international cooperation was also important.
“Scams are no longer petty cases of cheating but have resulted in losses amounting to billions. Stiffer penalties will help but what we really need are laws that empower us to take action against scam syndicates based overseas.
“Many of these scammers are based in neighbouring countries but defrauding Malaysians.
“Just as we have a framework to fight drugs and human trafficking in collaboration with foreign enforcement, we need to develop another for scams as well,” he said.
Sim said it was also essential to ensure that police personnel, especially those with the commercial crimes investigations department (CCID), are well-trained and equipped with the latest technology to counter scamming activities.
“What we found is that the CCID is understaffed and is not equipped with the latest technology.
“Bank Negara should also work closely with commercial banks to study how scam syndicates are evolving and develop a framework on how to rapidly thwart any unauthorised movement of funds,” he said.
