PETALING JAYA: Behind every phone call, WhatsApp message and dubious social media account used to scam victims lies the backbone of fraud syndicates – an illegal supply chain of pre-registered SIM cards.
Bukit Aman Commercial Crime Investigation Department (CCID) director Comm Datuk Rusdi Mohd Isa (pic) said the illegal supply of SIM cards is a crucial enabler that allows scam syndicates to operate anonymously with minimal risk of detection.
“Investigations into the supply of illegal or pre-registered SIM cards are critical in the context of increasingly sophisticated fraud and cybercrime.
“The use of pre-registered SIM cards enables syndicates to operate anonymously and in an organised manner, making it more difficult to trace suspects, gather intelligence and establish the identities of the actual perpetrators.
“We view this as one of the key enablers of online scams and fraud,” he told The Star.
As such, Comm Rusdi noted that police investigations are no longer focused solely on masterminds or end users, but cover the entire illegal SIM card supply chain, including runners, registration agents, distributors and suppliers.
He said the SIM cards are used to not only contact victims through phone calls, SMS and applications such as WhatsApp, but also to create fake accounts on various digital platforms, including social media and financial applications.
He said there are indications that syndicates are acquiring SIM cards in large quantities to support systematic scam operations.
“Based on CCID operational records from 2024 to April this year, six raids were conducted on premises believed to be involved in scam activities, including call centres, resulting in the seizure of 1,673 SIM cards.
“They are believed to have been used to create communication on social media accounts and various digital platforms to deceive victims while making it harder for authorities to identify the actual perpetrators,” he said.
Comm Rusdi also said syndicates rely on runners or middlemen to obtain, store and distribute SIM cards to other syndicates, making it harder to trace the chain back to the masterminds.
He added that those involved in illegal SIM card networks include both foreigners and locals.
“There have also been cases where the identities of Malaysians were misused without their knowledge to register SIM cards that were later used in criminal activities.
“CCID also does not rule out cross-border elements, where scam operations are run from overseas while using telecommunication services obtained in Malaysia,” he said.
On enforcement challenges, he said they include compartmentalised syndicate structures, identity misuse, weaknesses in the SIM card supply chain and cross-border elements.
“There is room for manipulation in the SIM card registration process, particularly involving unauthorised agents, abuse of registration systems or non-compliance with prescribed operating procedures.
“Syndicates exploit these weaknesses to obtain large numbers of SIM cards illegally,” he said.
Comm Rusdi said CCID will continue working with telecommunications companies, the Malaysian Communications and Multimedia Commission (MCMC), financial institutions and local and international enforcement agencies to dismantle the entire ecosystem supplying SIM cards to scam syndicates.
In February, MCMC introduced a mandatory standard to tighten prepaid SIM card registrations to curb online scams, identity misuse and fraudulent registrations.
Under the new rules, foreigners studying or working in Malaysia are limited to two SIM cards per telecommunications provider.
Children below 12 are prohibited from registering, while those aged between 12 and 17 must have their SIM card registrations done by a parent or legal guardian.
