CRG-658 Universiti Teknologi Mara – KUALA LUMPUR: Macau scam syndicates are now withdrawing the pilgrimage funds linked to conventional bank accounts.

QUESTION

KUALA LUMPUR: Macau scam syndicates are now withdrawing the pilgrimage funds linked to conventional bank accounts. Bukit Aman Commercial Crime Investigation Department (CCID) had already detected 65 similar cases involving losses of nearly RM3.6milion. Federal CCID director, in his statement warned the public regarding these scams and will take all necessary actions to prevent public from becoming victims of fraud. “Based on the investigations, these activities are being conducted by a Macau scam syndicate. They will make calls to the victims and intimidate the victims with allegations of involvement in criminal activities and outstanding credit card debts among other tactics,” he said in a statement on Thursday 19 of May.

He added that the syndicate would then ask victim to disclose their banking information as a mean to clear them from any wrongdoing. “We have now detected cases where the syndicates have withdrawn money from Tabung Haji fund account that linked to a conventional bank account belonging to the victims. The convenience of internet banking facilities by Tabung Haji and other conventional banks has made this possible,” he said. He added investigations revealed that, victim involved had provided banking information to an unknown individual over the phone. As a result, the victim is not only losing money from their bank account but also money from the pilgrimage fund account as well.

In another instances, a 45-year-old female bank officer lost RM240,000 after passing her account details to those who claimed from the central bank (Bank Negara Malaysia). Many of the reported victims are educated females with a decent amount of savings in their bank account, hard-earned savings, like retired civil servants who get a lump sum gratuity after decades of service. It is a real heartache for them to lose their entire savings, with no chance of getting it back. While we have read of the unending scams, but prosecution on the cases is not many being reported.

Adapted with amendment: https://www.thestar.com.my/news/nation/2022/04/07/macauscams-now-targeting-tabung-haji-accounts-say-cops and https://www.freemalaysiatoday.com/category/opinion/2022/01/03/macau-scam-thrivesbecause-of-kautim-culture/

Required:

1. Based on the above case, it can be concluded that the stakes of the Commercial Crime Investigation Department (CCID) relate to accountability. Explain the above statement (6 Mark)
2. Discuss: (i) the relation of the above case to Milton Friedman’s theory; and (ii) an appropriate type of justice to be given to the individuals who initiate the syndicate. (8 Mark)
3. Evaluate the ethicality of the Macau scam based on (i) Deontology theory; and (ii) Consequentialism theory (10 Mark)
4. Discuss how the Macau syndicate has violated the following axioms of Islamic ethical philosophies as described by Beekun: (i) Responsibility; and (ii) Benevolence (6 Mark)

ANSWER

Macau Scam Syndicates and the Stakes of Accountability: An Ethical Analysis

Introduction

The prevalence of Macau scam syndicates in Malaysia has become a concerning issue, as these fraudsters continue to find new ways to deceive innocent individuals and withdraw funds from their bank accounts. The actions of these syndicates raise questions about accountability and the need for appropriate justice. This essay will analyze the case, considering the stakes of the Commercial Crime Investigation Department (CCID) and the ethical implications using theories such as Milton Friedman’s theory, deontology, consequentialism, and Islamic ethical philosophies.

The Stakes of the Commercial Crime Investigation Department (CCID) and Accountability

The CCID plays a crucial role in combating commercial crimes, including scams like the Macau syndicates. In this case, the stakes of the CCID relate to accountability. Accountability refers to the responsibility of individuals or organizations to answer for their actions and be held liable for any misconduct or harm caused. The CCID aims to ensure that those involved in Macau scams are identified, apprehended, and brought to justice. By detecting and investigating such cases, the CCID seeks to hold the scammers accountable for their fraudulent activities, preventing further harm to the public.

Relation to Milton Friedman’s Theory

Milton Friedman’s theory of corporate social responsibility posits that the primary responsibility of a business is to maximize profits within the boundaries of the law. In the context of the Macau scam syndicate, this theory highlights the role of financial institutions and their responsibility to protect their customers’ accounts. Banks have a duty to implement robust security measures, educate customers about potential scams, and promptly investigate and resolve cases of fraud. The failure to fulfill these responsibilities can lead to significant financial losses for victims, as seen in the case of the 45-year-old female bank officer who lost RM240,000.

Appropriate Type of Justice

Given the severity of the harm caused by these syndicates, an appropriate type of justice to be given to the individuals who initiate the syndicate would be retributive justice. Retributive justice focuses on punishment proportional to the harm caused and aims to deter future criminal behavior. Those found guilty of orchestrating Macau scams should face legal consequences commensurate with the severity of their actions. Additionally, restorative justice approaches may be employed to compensate victims and provide them with support and restitution.

Ethical Evaluation: Deontology and Consequentialism

Deontology Theory: Deontology emphasizes the importance of moral duties and principles. From a deontological perspective, the Macau scam syndicate’s actions are inherently unethical as they involve deception, manipulation, and financial exploitation. These scams violate the fundamental duty of honesty and respect for others, undermining trust in financial systems and causing harm to individuals and society.

Consequentialism Theory: Consequentialism focuses on the outcomes or consequences of actions. In the case of Macau scams, the consequences are detrimental to the victims who suffer significant financial losses, emotional distress, and a loss of trust in financial institutions. From a consequentialist standpoint, the actions of the syndicate are highly unethical as they result in harm outweighing any potential benefits for the perpetrators.

Violation of Islamic Ethical Axioms: Responsibility and Benevolence

Responsibility: Islamic ethical philosophies emphasize individual responsibility. The Macau scam syndicate violates the axiom of responsibility as they evade accountability for their fraudulent actions. They shift the burden onto innocent victims by manipulating them into disclosing their banking information. This violation goes against the Islamic principle of being responsible for one’s actions and the obligation to protect the rights and well-being of others.

Benevolence: Islamic ethics promote the virtue of benevolence, which entails acting with kindness, compassion, and goodwill towards others. The Macau scam syndicate demonstrates a complete disregard for benevolence as they exploit the vulnerabilities of victims, causing substantial financial and emotional harm. Their actions undermine the spirit of caring for fellow individuals and violate the principles of fairness and justice.

Conclusion

The prevalence of Macau scam syndicates highlights the importance of accountability in combating commercial crimes. The actions of these fraudsters raise ethical concerns from various perspectives, including Milton Friedman’s theory, deontology, consequentialism, and Islamic ethical philosophies. It is crucial for authorities to intensify efforts to hold the syndicate members accountable, deter future scams, and provide justice to the victims. Additionally, financial institutions must prioritize the implementation of robust security measures and educate their customers to mitigate the risks associated with these scams. By addressing the ethical dimensions of the Macau scam, society can work towards protecting individuals and fostering a culture of trust and integrity.