Malaysian telcos embrace digital ID scheme to combat fraud

• MyDigital ID verification software will be integrated by all mobile operators
• The government-backed initiative will verify new SIM registrations and app sign-ons
• The number of scam calls doubled in Malaysia last year

Malaysia’s mobile operators have collaborated with MyDigital ID to integrate the state-run platform’s identity verification systems across their mobile operations as part of an effort to combat scam calls and identity fraud.

From today, mobile users across the country will see heightened protection against digital fraud linked to unverified or misused SIM cards as a result of the initiative, which sees operators partnering with multiple government-led agencies focused on cybersecurity. Malaysia has a significant problem with scam calls, with the number almost doubling to 2.98 million in 2024, up from 1.63 million in 2023, according to numbers shared by MyDigital ID. 

The MyDigital ID scheme is backed by the National Cyber Security Agency (NACSA) and coordinated by the Malaysian Communications and Multimedia Commission (MCMC).

The initiative comprises three components: Verifying existing prepaid numbers after a new SIM is purchased; verifying new SIM registrations; and enabling single sign-on for operator apps using a MyDigital ID log-in.

MyDigital ID CEO Nik Hisham Nik Ibrahim stated: “Mobile numbers are frequently exploited for scams and identity frauds. By using a legitimate digital identity, we can significantly reduce the risks of such crimes, strengthen digital trust and safety whilst preventing leakages within the digital economy.”

NACSA CEO Megat Zuhairy Megat Tajuddin added: “The rollout may vary across providers. Some telcos may begin with a single component, others may implement two, and full adoption of all three will take place progressively over time.”

The move is the mobile operator sector’s latest initiative to combat mobile-related fraud in the country. Earlier this year, the country’s leading operators – CelcomDigi Berhad, Maxis, U Mobile, Telekom Malaysia (TM) and YTL Communications – unveiled plans to “launch a new federated network service for online businesses to help them combat fraud and digital identity theft”.

The operators plan to use the GSMA’s Open Gateway initiative to provide enterprise developers at banks and online retailers with federated access to the Number Verification API, which will verify a customer’s mobile number to provide strong authentication and an improved user experience.

- James Pearce, Contributing Editor, TelecomTV