FOMO, Social Engineering Tricks Cause RM1.12 Bln Losses In Online Scams

KUALA LUMPUR, Aug 25 (Bernama) -- Despite various warnings, online fraud continues to be rampant as fraudsters or 'scammers' become increasingly cunning using various tricks including psychological manipulation techniques such as social engineering and ‘fear of missing out’ (FOMO) to trap victims.

These factors contribute to huge losses as data from the Ministry of Home Affairs (KDN) revealed that in the first six months of this year alone, Malaysians lost RM1.12 billion, equivalent to an average of RM6.1 million lost every day due to digital frauds.

A Bernama survey on social media found that many victims shared their experiences of being scammed when buying goods online, including clothes that were not delivered or of lower quality than advertised, as well as holiday and hiking packages that did not actually exist.

Even more distressing, some shared their bitter experiences on their wedding day when they were scammed by makeup artists or cameramen, including overseas honeymoon packages booked via social media, involving losses of hundreds to thousands of ringgit.

Speaking to Bernama, Universiti Putra Malaysia (UPM) Cyber ​​Security Research Group (CyReg) head, Dr Mohd Izuan Hafez Ninggal said social engineering has become a weapon for scammers because it takes advantage of psychological weaknesses to gain the trust of victims.

"Scammers are clever at gaining the trust of their victims through convincing sentences, fake audio or video, fake reviews, fake QR codes and various other methods that are constantly updated.

"They also create a fear of missing out or fear of missing out (FOMO) causing emotions to start to outweigh logic due to naivety and lack of exposure, experience or knowledge," he said.

He added that there is no software or hardware that can protect someone from social engineering attacks, except awareness, experience and caution as the main defence.

As a preventive measure, he advised that purchases be made through official e-commerce platforms because they have security mechanisms such as payments will only be credited after the buyer confirms receipt of the goods.

The senior lecturer of UPM’s Faculty of Computer Science and Information Technology, said that for traders, fraud occurs through stolen credit cards, fake payment receipts and claims of goods not yet received or damaged goods.

“There are also cases of buyers using their own credit cards, but after the goods arrive, they file a report with the bank claiming the transaction is invalid or done by someone else,” he said.

According to Mohd Izuan, the biggest loss is not just money, but peace of mind when the victim continues to be plagued by fear and worry.

“We need to be constantly vigilant to reduce the risk of becoming a victim. If we are careless, we are easily manipulated and face emotional harm due to the loss of money, time and effort,” he advised.

-- BERNAMA