Malaysians Embrace Digital Services but Fear Online Fraud, Global Study Finds

KUALA LUMPUR – Malaysians are among the world's most enthusiastic users of digital services, but rising concerns over online fraud and cyber threats are creating a growing trust gap, according to a new global study commissioned by IDEMIA Secure Transactions (IST).

The research, conducted by IPSOS BVA across 11 countries involving more than 3,300 respondents, found that while digital services have become deeply embedded in daily life, many consumers feel increasingly vulnerable to cyber risks they do not fully understand.

Malaysia emerged as one of the most digitally engaged markets surveyed, with 98 per cent of respondents identifying themselves as frequent users of digital services.

However, the country's rapid digital adoption is accompanied by heightened security concerns. The study found that 87 per cent of Malaysian respondents are worried about digital fraud, while 91 per cent fear their personal data could be stolen when using online services.

More than half, or 53 per cent, said they feel more vulnerable online today than they did five years ago.

Despite growing awareness of cybersecurity issues, the study also revealed a significant knowledge gap. Nearly half of Malaysian respondents admitted they do not fully understand how cyber threats work or how they may become victims, even though they recognise the risks.

The findings suggest that consumers are not abandoning digital services because of these concerns. Instead, they increasingly expect stronger security measures to be built into digital platforms without affecting convenience or ease of use.

The study also points to emerging technologies as a source of both innovation and anxiety. Artificial intelligence driven cyber attacks were identified as a growing concern among respondents, while quantum computing is beginning to influence perceptions of long term cybersecurity risks.

Although only a minority of Malaysians said they have a clear understanding of quantum computing, 83 per cent of those familiar with the technology already consider it a potential cybersecurity threat.

Marc Bertin, Chief Technology Officer of IDEMIA Secure Transactions, said trust has become a defining factor in how consumers interact with digital technologies.

"As digital ecosystems become more sophisticated, trust is becoming a defining factor in how users engage with technology. In Malaysia, digital adoption is among the strongest, but users also expect greater transparency, stronger protection and more reassurance around how their data and transactions are secured," he said.

He added that the industry's challenge has evolved beyond simply protecting digital services.

"The challenge is no longer only to secure digital services, but to make security tangible, understandable and future ready for users."

The report highlights the growing importance of secure by design technologies, including encryption, authentication and tokenisation, which help protect users while maintaining seamless digital experiences.

The findings come as Malaysia continues to accelerate digital transformation across banking, e commerce, telecommunications and government services, placing cybersecurity and consumer trust at the centre of the country's digital economy agenda.

IDEMIA Secure Transactions provides secure payment, connectivity and cybersecurity technologies to more than 2,000 financial institutions, mobile network operators, automotive manufacturers and Internet of Things providers globally. The company says it secures billions of digital transactions each day through its cryptography and digital credential technologies.

Its parent company, IDEMIA Group, employs more than 10,700 people worldwide and operates through two core divisions: IDEMIA Secure Transactions, which focuses on secure payments and digital connectivity, and IDEMIA Public Security, which delivers biometric and identity solutions to more than 600 government agencies around the world.