Malaysia is weighing legal action against Facebook after government officials raised concerns about the platform’s level of cooperation in tackling online scams and gambling-related content.
The warning comes as authorities intensify efforts to combat online fraud, which continues to generate significant financial losses across the country.
Government Demands Stronger Cooperation
Speaking after a multi-agency retreat on anti-scam initiatives, Fahmi Fadzil said the government could pursue legal measures if Facebook fails to improve collaboration with regulators and law enforcement agencies.
Fahmi indicated that discussions with the platform would continue through the Malaysian Communications and Multimedia Commission, but stressed that authorities expect stronger engagement in addressing harmful online activity.
He described the situation as a final opportunity for the platform to demonstrate its willingness to cooperate with the government’s efforts to combat scams and illegal content.
Facebook Linked to Majority of Scam Cases
According to data provided by the MCMC, authorities have submitted 271,472 content removal requests to online platforms.
The regulator reported that 91% of those requests involved scam-related or gambling-related content. Among these cases, Facebook accounted for a significant share of the activity identified by authorities.
Officials stated that 81% of gambling-related cases and 58% of scam-related cases were linked to Facebook, making it one of the primary platforms under scrutiny.
The figures have intensified pressure on technology companies to take more proactive measures against fraudulent activity and illegal promotions appearing on their services.
Scam Losses Reach Record Levels
The government’s concerns come amid a sharp increase in financial losses linked to scams.
According to a parliamentary response issued by Malaysia’s Home Ministry in January 2026, scam-related losses reached MYR2.77 billion (approximately $684.6 million) during 2025, marking the highest annual total recorded in the past three years.
Authorities also revealed that cumulative losses from scam activities between 2023 and 2025 totaled MYR5.62 billion (approximately $1.39 billion), highlighting the growing scale of the problem.
Financial Authorities Strengthen Prevention Efforts
Malaysia’s central bank, Bank Negara Malaysia, has also intensified efforts to disrupt fraudulent transactions.
According to Fahmi, the central bank successfully blocked MYR1.2 billion (approximately $296.4 million) in scam-related transactions over the past year.
As online fraud continues to evolve, Malaysian authorities are increasing pressure on digital platforms to play a more active role in content moderation and fraud prevention. The potential legal action against Facebook reflects a broader regulatory trend in which governments are demanding greater accountability from technology companies in the fight against online scams.
