Lessons from London and Singapore: Rebuilding Malaysia’s Shield against E-Commerce Fraud

The rapid expansion of e-commerce in Malaysia has significantly increased the incidence of fraudulent transactions, including non-delivery of goods, misleading product descriptions, counterfeit items, and sophisticated online scams. Despite the existence of key legislation such as the Consumer Protection Act 1999, the Electronic Commerce Act 2006, and the Consumer Protection (Electronic Trade Transaction) Regulations 2024, notable regulatory gaps remain in addressing platform liability, cross-border enforcement, seller verification, and effective consumer redress mechanisms. This article critically examines the adequacy of Malaysia’s current legal framework in protecting consumers against e-commerce fraud. Through a comparative analysis with the United Kingdom (particularly the Digital Markets, Competition and Consumers Act 2024 and related consumer protection regimes) and Singapore (primarily the Consumer Protection (Fair Trading) Act and complementary anti-scam measures and industry guidelines), the study identifies strengths and weaknesses across the three jurisdictions. The findings reveal that while Malaysia has made progressive updates through recent regulations, it lags behind the United Kingdom’s stronger direct enforcement powers and Singapore’s more proactive platform accountability and anti-scam frameworks. Drawing on these comparative insights, the article proposes targeted legal reforms, enhanced institutional coordination, clearer platform liability rules, and improved dispute resolution mechanisms to strengthen Malaysia’s e-commerce consumer protection regime and foster greater trust in the digital marketplace.

Consumer protection, fraudulent transactions, Malaysia, Singapore, United Kingdom

1. Abdul Manap, Norhoneydayatie, Madihah Adnan, Amirah, Zakaria, Zamzuri "Consumer Protection Against Online Purchase Fraud in Malaysia: An Analysis of the Consumer Protection Act 1999" International Journal of Advanced Research 10.11(2022) [Google Scholar] [Crossref]

2. Amin, N., & Mohd Nor, R. (2013). Online shopping in Malaysia: Legal protection for e-consumers. European Journal of Business and Management, 5(24), 79. [Google Scholar] [Crossref]

3. Armizan, M. A. (2026, February 4). Parliamentary reply on online fraud complaints [Oral answer]. Dewan Rakyat, Parliament of Malaysia. Reported in New Straits Times: https://www.nst.com.my/news/nation/2026/02/1371621/armizan-over-33000-online-fraud-complaints-lodged-2023-2025 [Google Scholar] [Crossref]

4. Cheong, W. L., & Ahmad, M. F. (2023). Understanding the social commerce scam and consumers’ self-protection behaviour. International Journal of Business and Technology Management, 5(2), 251–262. mohe.gov.my [Google Scholar] [Crossref]

5. Competition and Markets Authority (CMA) v AA Driving School and BSM Driving School (2026). [Google Scholar] [Crossref]

6. Competition and Markets Authority. (2026, April 15). CMA orders the AA and BSM driving schools to refund learner drivers over drip pricing. GOV.UK. https://www.gov.uk/government/news/cma-orders-the-aa-and-bsm-driving-schools-to-refund-learner-drivers-over-drip-pricing [Google Scholar] [Crossref]

7. Inter-Ministry Committee on Scams. (2024, April 10). E-commerce Marketplace Transaction Safety Ratings 2024. Ministry of Home Affairs. https://www.mha.gov.sg/media-room/newsroom/e-commerce-marketplace-transaction-safety-ratings-2024/ [Google Scholar] [Crossref]

8. Ministry of Home Affairs. (2025, September 26). Enhanced e-commerce guidelines to safeguard consumer trust and foster competitive e-commerce market. https://www.mha.gov.sg/media-room/newsroom/enhanced-e-commerce-guidelines-to-safeguard-consumer-trust-and-foster-competitive-e-commerce-market [Google Scholar] [Crossref]

9. Mohd Khalid, I. (2026, June 15). Statement on online scam cases and losses in 2025. Royal Malaysia Police / reported via New Straits Times: https://www.nst.com.my/news/nation/2026/06/1464407/igp-66204-online-scam-cases-reported-2025 [Google Scholar] [Crossref]

10. Mohd Mokhtar, M. F. (2025). Consumer ADR in Malaysia. In E. Sahin-Sengul & S. Kaya (Eds.), Consumer Alternative Dispute Resolution in Emerging Economies (pp. 188–204). Routledge. https://doi.org/10.4324/9781032689739-13 [Google Scholar] [Crossref]

11. Mordor Intelligence. (2026, August). Malaysia e-commerce market growth, share & size - 2031. https://www.mordorintelligence.com/industry-reports/malaysia-ecommerce-market [Google Scholar] [Crossref]

12. Razali, N. A. H., Wan Rosli, W. R., & Othman, M. B. (2022). The legal protection of e-consumers against e-commerce fraud in Malaysia. Malaysian Journal of Social Sciences and Humanities (MJSSH), 7(9), e001778. https://doi.org/10.47405/mjssh.v7i9.1778 [Google Scholar] [Crossref]

13. Sarabdeen, J. (2025). Empirical analysis of e-consumer laws and way forward for better protection. Journal of Posthumanism, 5(4), 1008–1021. https://doi.org/10.63332/joph.v5i4.1183 [Google Scholar] [Crossref]

14. Singapore Police Force. (2025, August 30). Mid-year scam and cybercrime brief 2025. https://www.police.gov.sg/-/media/SPF/Media-Room/Statistics/Mid-Year-Scams-and-Cybercrime-Brief-2025/Police-News-Release---Mid-Year-Scam-and-Cybercrime-Brief-2025.pdf [Google Scholar] [Crossref]

15. Subagyono, B. S. A., Satory, A., Suheryadi, B., Melissa, M., Yeri, H. N., & Indiaty, K. A. L. (2025). In the Context of Consumer Protection Law, E-Commerce and Its Settlement: Lesson From Indonesia, Malaysia, and European Union. Journal of Posthumanism, 5(1), 379–397. https://doi.org/10.63332/joph.v5i1.567 [Google Scholar] [Crossref]

16. The Edge Malaysia. (2026, July 2). Over RM430 mil worth of losses to e-commerce scams in the first three months of 2026 — Armizan. https://theedgemalaysia.com/node/809191 [Google Scholar] [Crossref]

17. The Star. (2026, January 26). Online transactions record highest number of complaints. https://www.thestar.com.my/news/nation/2026/01/26/online-transactions-record-highest-number-of-complaints [Google Scholar] [Crossref]

18. The Vibes. (2026, August 17). E-Commerce fraud surges 92% as Shopee calls for stronger consumer safeguards. https://www.thevibes.com/articles/lifestyles/126271/e-commerce-fraud-surges-92-as-shopee-calls-for-stronger-consumer-safeguards [Google Scholar] [Crossref]

19. Tseng, Y.-H. (2023). Consumer protection in ASEAN’s e-commerce: Common issues and the path towards harmonization of regulatory frameworks. Chulalongkorn University. https://doi.org/10.58837/chula.the.2023.1248 [Google Scholar] [Crossref]

20. Zeno, J. (2022). Information in consumer contracts: Reforming consumer protection law in Malaysia. Asian Journal of Comparative Law, 17(2), 242–267. https://doi.org/10.1017/asjcl.2022.18 [Google Scholar] [Crossref]

• Conflict of Law in the Safeguarding of Malaysian Intangible Cultural Heritage: A Way Forward
• Alternative Dispute Resolution in India: A Brief Overview Justice Delayed is Justice Denied. - William E. Gladstone
• The Role of Museums in Safeguarding Cultural Heritage Rights: Balancing Access and Repatriation
• An Evaluation of the Universal Declaration of Human Rights' Significance and Application in Nigeria
• The Role of International Law in Shaping National Immigration Policies.