In the thriving digital world of Malaysia, online marketplaces are essential for buying and selling, completely transforming the way commerce is conducted. The ease of online shopping has become a crucial element for those seeking efficiency, variety, and accessibility. As Malaysia’s e-commerce sector rapidly emerges as a powerhouse in South-East Asia, its growth has surpassed that of traditional markets in the region.
Despite the convenience and wide variety of options, a major threat looms in the form of online scams, casting a shadow on the seamless experience. Many scams continue to affect popular online marketplaces, prompting owners and authorities to take steps to protect both buyers and sellers from these insidious practices.
A press release from online marketplace Mudah.my and the Malaysia Royal Police (PDRM) earlier this year highlighted a significant increase in ecommerce scams. Data from the Commercial Crime Investigation Department (CCID) of PDRM revealed that the number of cases increased from 3,512 in 2019 to 5,850 in 2020. This upward trend continued, with 9,545 cases in 2021 and 9,258 in 2022. Furthermore, the losses due to ecommerce scams escalated from RM28 million in 2019 to RM140 million in 2022, reaching RM144.8 million earlier this year in August.
With just a few clicks, shoppers can easily explore a vast catalogue of goods, from the latest fashion trends to cutting-edge gadgets, all from the comfort of their homes. The convenience extends beyond brand-new items, as these platforms offer a thriving marketplace for used goods as well. Additionally, the elimination of geographical constraints has allowed consumers to access a global marketplace, broadening their choices and enabling them to make informed decisions based on reviews, ratings, and competitive prices.
Sadly, the flourishing ecommerce market has opened the floodgates to an abundance of scams, posing significant challenges for both buyers and sellers. A string of deceptive practices has mushroomed across popular online marketplaces, tarnishing the trust that users place in these platforms. In October, The Star reported that between January and August this year, the police had arrested 3,659 suspects in connection with ecommerce scams. CCID director Comm Datuk Seri Ramli Mohamed Yoosuf had said that cheating cases were becoming more challenging to curb as technology had allowed scammers to go online. Indeed, payment frauds loom large, with scammers manipulating transactions through fake payment receipts or soliciting advance payments without fulfilling their end of the bargain.
One prevalent scam involves the misrepresentation of products, where sellers use deceptive tactics such as using stock images or providing inaccurate descriptions to lure unsuspecting buyers. Another scam involves buyers attempting to move transactions off the platform to manipulate sellers, but steps can be taken to prevent this.
While most online marketplaces implement preventive measures and enhance security wherever possible, there is still a responsibility on users to exercise caution, stay informed, and adopt protective strategies when navigating these digital marketplaces. Carousell, for example, encourages its users to review each other’s profiles and read reviews and ratings before confirming a deal. The platform has systems in place to detect fraudulent behaviour and a way to report suspicious activity as well.
