Attractive salaries, commissions help drive growth of scam centres in Malaysia

Authorities in Malaysia have dismantled numerous scam centers and illegal call hubs across various states, including Johor, Penang, Melaka, the Klang Valley, Sabah, and Sarawak. This comes as transnational criminal syndicates expand their operations regionally, with Malaysia becoming a preferred destination.

What sets the Malaysian situation apart is the shift in recruitment tactics. Traditionally, these centers relied on trafficked foreign workers in compound-style facilities. However, many now openly hire local Malaysians on paid contracts, offering salaries around US$1,500 a month (approximately RM6,100), a significant increase compared to typical gig-economy earnings.

Forest City, with its abundance of unoccupied residential units, has emerged as a major hotspot for these operations. Police raids in the area have dismantled scams involving cryptocurrency fraud, romance scams, and fake recruitment networks targeting victims internationally. Similarly, Penang has seen multiple raids in residential zones, uncovering clandestine call bases and specialising in impersonation schemes and "scratch-and-win" investment networks.

The Klang Valley, Malaysia's commercial and technology hub, has attracted more structured setups, with operations occupying entire floors of commercial buildings and high-end condominiums. One raid in Cyberjaya alone detained hundreds of workers who ran fraudulent stock apps and loan schemes, primarily targeting victims in South Korea and China.

While traditional scam centers were known for exploiting foreign workers, the Malaysian scenario shows a growing trend of local Malaysians being recruited openly. These workers are paid regular wages and receive training in specific scam operations, allowing them to blend into ordinary residential and commercial environments. This local-recruitment approach complicates enforcement efforts, as the syndicates can operate more discreetly within the local economy.