Strong and swift action is needed to protect corporates from cyber crimes

Datametrics Research and Information Center Sdn Bhd (DARE) is deeply concerned to read a recent news report of an alleged fake news cum criminal intimidation against a Main Market listed company and is urging the authorities to take strong and swift action to safeguard the integrity of the capital markets as well as the investment community.

DARE comments came following a press statement issued by the Board of Directors of YNH Property Berhad yesterday, which alleged that the organisation including members of its Board, management team, and shareholders have come under attack through “fake news” or articles that contain defamatory and false representations and statements.

Pankaj Kumar, Managing Director of DARE, said, “As a business columnist and as someone who writes about the capital markets with a long history, I follow developments by publicly listed companies closely.

I have personally come across some of these articles mentioned by the company. These articles have also been re-shared amongst the investment community and have become the talk of the town as messages go viral,” he continued.

“Although we are not certain as to the veracity of the news portals that published the story nor the accuracy of the reports, the damage has already been done,” Pankaj added.

According to Pankaj, a Main Market-listed company is well-regulated with robust checks and balances.

“If there are any issues related to the organisation, there are several legal and proper channels or even to bring the matter to regulators’ attention. These range from whistleblowing to the Company’s Board of Directors or Audit Committee to even filing a report to the Securities Commission or Bursa Malaysia,” he explained. 

He added, “The sheer number of negative articles published coupled with alleged criminal intimidation as reported by the company is reflective of malicious intent and must be investigated and stopped immediately.”

Pankaj further added, “if today the attacks are on one company, what if goes beyond and these perpetrators target other companies? Where does it end?”

DARE highlighted that the proliferation of ‘fake news’ and misinformation is the result of the over-reliance on social media being used as a primary source of information and this has become a potential avenue for criminals as well as individuals wanting to harm a company.

The impact of ‘fake news’ or misinformation can have far-reaching consequences for publicly listed companies as it could potentially impact share price, hurting thousands of investors and shareholders; cause the cost of financing to rise; and hurt a company’s ability to operate or undertake strategic partnerships.

“As YNH Property has made a police report and lodged a complaint with MCMC, the authorities must now take the bull-by-the-horns to investigate the matter thoroughly.

"Speed is of the essence as this alleged cyber-crime can set dangerous precedence, which can be detrimental to corporate Malaysia at large,” Pankaj concluded. – DagangNews.com