Blackmail of Malaysian lawmakers spotlights Asia’s growing AI-abetted scam problem
As Malaysian authorities hunt for those behind a deepfake blackmail scandal that targeted at least 10 lawmakers, debate is growing over whether the country’s laws can keep pace with the rapid rise of artificial intelligence.
At the start of September, 10 ministers and senators received emails threatening to release fabricated videos showing them engaged in lewd sexual acts. Officials say the perpetrators demanded $100,000 in ransom to prevent the videos’ release.
The scandal has reignited discussion over the need for legislation that directly addresses AI-generated fraud. Malaysia’s main cyber law, the Communications and Multimedia Act, was enacted in 1998, long before generative AI existed.
Last year, Malaysia passed the Online Safety Act, which does cover deepfakes, but the law has not yet come into effect. Some legal experts argue that the blackmail attempt could be prosecuted under Section 292 of the Penal Code, which criminalises obscene materials.
For many experts, the blackmail highlights the urgency of more AI-specific legislation.
“The law is there, but the context of crimes committed using AI does not fit exactly into the definition of the crimes, especially if there are no tangible damages incurred from the abuse of AI,” Melissa Lim, an AI legal research fellow with Sinar Project, told The Straits Times.
Malaysia’s digital minister, Gobind Singh Deo, has announced plans to table a dedicated AI bill by mid-2026. But that timeline has prompted concern as AI-enabled scams proliferate across Southeast Asia.
A report by the Global Initiative Against Transnational Organised Crime found that deepfake cases in the Asia-Pacific region surged by 530% between 2022 and 2023, second only to North America in total reported incidents.
In the first half of 2024 alone, AI-related crimes involving deepfakes ballooned by more than 600%, according to a United Nations Office on Drugs and Crime report.
Criminal hubs in countries like Thailand are also turning to AI to supercharge other scams. A Reuters report this month quoted a scammer who admitted using ChatGPT to impersonate Americans while defrauding US citizens.
The victims are not only the vulnerable but also the powerful. In December 2023, deepfake videos featuring Singapore’s Prime Minister Lee Hsien Loong and Deputy Prime Minister Lawrence Wong falsely depicted them endorsing cryptocurrency and investment products.
With its young population and reliance on labour exports, Southeast Asia is becoming a magnet for transnational organised crime groups that are evolving into “criminal service providers.”
As Malaysia races to identify those behind the deepfake blackmail, it is also weighing tougher legislation to provide long-term protection against AI-driven threats.
This story is written and edited by the Global South World team, you can contact us here.
