PETALING JAYA: Investigations into false SIM (Subscriber Identity Module) card registrations have seen a rise, especially last year, which saw a nearly 85% increase with 48 cases; compared to 26 cases in 2024 and no cases in 2023.
These figures, which were revealed by the Malaysian Communications and Multimedia Commission (MCMC) to The Star in an interview, showed how fast SIM fraud cases are on the rise in the country.
“The cases of improperly registered SIM cards continue to surface, primarily due to abuse at the distribution level or misuse of identity information by irresponsible parties,” said MCMC.
“In such cases, SIM cards may appear to be ‘registered’ even though the actual identity holder did not consent or was unaware of the registration.”
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It added that with the number of cases increasing year-on-year, it indicates an upward trend in cases possibly linked to SIM card fraud.
MCMC said they conduct audits and compliance monitoring on an ongoing, risk-based basis, which means they carry out oversight continuously, and audit activities are prioritised based on risk indicators such as complaints, data trends and past compliance records.
“This includes physical and online SIM purchase audits, verification of subscriber data with the National Registration Department, and investigations arising from public complaints and intelligence.
“Enforcement action for non-compliance may include offering compounds or initiating criminal proceedings for breaches of licence conditions under the Communications and Multimedia Act 1998,” MCMC added.
The commission also highlighted that telecommunication service providers are held accountable for failures in prepaid SIM registration compliance, including inadequate identity verification or improper dealer practices.
“Failure to properly register prepaid users may constitute a breach of licence conditions, which could result in enforcement action being taken,” it said.
“Telecommunication service providers are also expected to cooperate fully with law enforcement agencies by providing accurate and reliable records to support investigations into criminal misuse,” it said.
To further strengthen safeguards, MCMC is finalising a Commission Determination on the Mandatory Standards for the Registration of End-Users of Prepaid Public Cellular Services (“Mandatory Standards”), which will replace the existing 2017 guidelines.
According to MCMC, under the existing 2017 guidelines, prepaid SIM cards must be registered to a verified end-user before activation.
The sale of pre-activated SIM cards is generally prohibited, except for a limited, MCMC-approved exception for inbound flights to Malaysia.
“So the proposed Mandatory Standards that will replace the existing 2017 guidelines will function as a legally binding regulatory instrument under the Communications and Multimedia Act 1998, requiring all telecommunication service providers to comply with stricter and more transparent registration requirements.
“These measures aim to enhance data integrity, strengthen enforcement effectiveness and significantly reduce the risk of identity misuse and SIM-related crimes.
“Non-compliance with the Mandatory Standards may result in enforcement action, including imposition of financial penalties up to RM500,000,
“Some of the new framework also introduces stronger identity verification measures, including biometric verification with MyDigital ID, which comprises verification of existing prepaid numbers registered under an individual’s identity.
“The framework will also secure verification for new prepaid SIM registrations and single sign-on authentication for access to telecommunications service provider applications.
“These measures enable MCMC to implement stronger, more consistent and more effective enforcement, while ensuring that telecommunications service providers remain accountable in preventing the misuse of SIM cards by irresponsible parties.
“The government remains committed to strengthening Malaysia’s digital regulatory framework to safeguard consumers and preserve the integrity of the national communications ecosystem,” said MCMC.
As part of broader reforms, Communications Minister Datuk Fahmi Fadzil had said on Sept 11 that prepaid SIM card registration will fully adopt MyDigital ID, involving all companies nationwide.
The move is aimed at strengthening digital security and reducing identity misuse, as efforts continue to safeguard consumers and preserve the integrity of Malaysia’s communications ecosystem.
