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Advertisers on social media must verify identities to curb online fraud: Teo

Move intended to tackle rising number of online financial scams, gambling ads and misuse of prominent individuals’ identities endorsing fake investment schemes

4:52 PM MYT

 

MELAKA — All advertisers of sponsored advertisements on social media platforms will be required to verify their identities in a bid to curb online fraud, Deputy Communications Minister Teo Nie Ching said.

The Malaysian Communications and Multimedia Commission (MCMC) will require every advertiser, whether an individual or a registered entity, to undergo identity verification by the platform before being allowed to publish sponsored advertisements, she said.

The measure, which also targets digital gambling activities and the misuse of prominent individuals’ identities, is among the new responsibilities under the Risk Mitigation Code (RMC) that comes into force tomorrow (June 1). 

Teo said the code, which is under the Online Safety Act 2025 (ONSA), will apply to social media platform providers classified as licensees, namely those with more than eight million users in Malaysia.

“We have seen many sponsored posts using the images of well-known individuals to promote content such as dubious investments, financial scams and online gambling, and so far it has been difficult to take action because we do not know who actually paid for the advertisements,” she said.

She told reporters this after attending the launch of the Kota Melaka Parliamentary Elected Representative for the People (WRUR) Programme for the Banda Hilir state constituency at Taman Kota Laksamana Cheng Ho here today. 

In May, it was reported that Malaysians lost RM2.77 billion to online and financial scams in 2025.

The Home Ministry in a parliamentary written reply in January, said cumulative losses to online and financial scams from 2023 to last year totalled Rm5.62 billion.

In April, police said 90% of commercial crime is now online, with non-existent investment schemes a major contributor to losses. 

Teo urged social media platform providers to fully cooperate in complying with the RMC as well as the Child Protection Code (CPC), which will also take effect tomorrow, to ensure the safety of internet users.

On the age-verification mechanism that will also take effect tomorrow to prevent individuals under the age of 16 from opening social media accounts, Teo explained that official documents such as identity cards or passports will be required for registration purposes.

She acknowledged that some parents are still looking for the best approach to convince their children about the safety measures, but said the majority fully support the initiative.

“Parents are indeed very supportive because they understand that the internet presents many issues such as cyberbullying, sexual abuse and child grooming, all of which are concerns faced by parents,” she said.

She said the government will provide a reasonable period for platform providers to fulfil these new responsibilities, but a high level of compliance is expected. – May 31, 2026

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