KUALA LUMPUR: The GSMA has sounded the alarm on the growing threat of scams in Southeast Asia, warning that digital trust must be urgently restored if Asean is to achieve its 2045 vision of a unified, future-ready digital economy.
Speaking at the inaugural Digital Nation Summit in Malaysia, GSMA head of Asia-Pacific Julian Gorman said scams are not only eroding confidence in digital platforms but also threatening economic participation.
He cautioned that the next decade will be critical for Asean to close infrastructure gaps, harmonise policy and strengthen cooperation.
“Digital is no longer just a convenience; it is at the core of how we live, learn and work,” Gorman said.
“But if citizens fear being online, achieving Asean’s 2045 digital vision becomes much harder. The next 10 years will decide whether we can get connectivity right or fall short.”
The GSMA’s latest Asean Consumer Scam Report revealed that over 200 million people in the region remain unconnected to mobile internet, while those online face increasing risks of fraud.
According to survey findings, 84% of consumers believe scams are rising, with two-thirds saying they are very worried about being targeted. In Malaysia, 16% of respondents reported significant financial losses, with the average scam costing around US$1,000 (RM4,202).
“Unfortunately, scams have a deep emotional impact as well as financial,” Gorman added. “People feel ashamed they were conned. Fear is changing behaviour, 92% of people surveyed said they have altered how they interact online because of scams.”
Among the scams identified, AI-driven deception is emerging as a growing concern. Around 6% of respondents said they had been tricked by AI-generated scams, a figure that Gorman warned is likely to rise as generative technologies become more sophisticated.
The report also highlighted infrastructure weaknesses across Asean, with countries such as Myanmar and Cambodia lagging behind. While Malaysia is advancing with 5G deployment and new data centres, Gorman noted that inclusive connectivity remains a challenge.
“The Digital Nations Index shows Malaysia’s strengths lie in its people and digital adoption, but weaknesses persist in infrastructure and innovation,” he said.
“Bridging this gap is essential if Malaysia wants to fully capitalise on its digital economy.”
GSMA outlined three key recommendations for Asean: bridge the infrastructure divide, accelerate regional policy harmonisation, particularly on cross-border data sharing and leverage international cooperation to fight scams and support innovation.
Failure to do so, Gorman warned, would allow the “scam economy” to continue flourishing in regulatory grey areas.
Jeanette Whyte, GSMA’s head of public policy and external affairs for Asia-Pacific, stressed the urgency of cross-sector collaboration.
In June, GSMA established the Asia-Pacific Collaboration Against Scams (Acast), a task force bringing together 31 organisations including mobile operators Meta, Google, TikTok and AWS.
“Scams and fraud are a hot topic because they erode digital trust, and without trust the digital economy cannot thrive,” Whyte said.
“Through Acast, we are sharing best practices from markets like Korea and Japan while pushing governments to act faster against threats such as SMS blasters and fake base stations.”
GSMA also announced that Malaysian mobile operators will roll out two standardised Open Gateway APIs, designed to combat scams by enabling risk scoring, silent verification and SIM-swap checks.
The initiative, Gorman said, will act as a “lighthouse” for the region, providing a framework for operators and fintechs to cooperate in detecting and blocking fraud.
“The digital economy has relied on SMS one-time passwords for 20 years,” Gorman explained. “These new APIs enhance security and user experience, while giving innovators a standard way to work with operators across Asean. It’s about outpacing scammers, who are constantly evolving.”
The GSMA believes Asean’s youthful demographic will be an advantage, as younger generations are more digitally savvy and open to adopting new technologies. However, Gorman emphasised that upskilling and advanced digital literacy remain vital.
“Turning on a phone is no longer a digital skill,” he said. “People need the competence to protect themselves, participate safely in the digital economy and embrace AI responsibly. That is where governments, operators and industry must focus.”
“The world is watching Asean,” Gorman said. “This region is growing twice as fast as advanced economies and investors are looking here. But to unlock that potential, we need to make digital a place where people feel safe and confident. That is the foundation for Asean’s future.”