Goals from Sam Winnall and Chris Iwelumo gave the Iron a half time lead, but three second half goals saw Laws' men crash to their first defeat of the season.
"I haven't seen us defend as poorly as a team all season. We've been very solid.
"I never thought in a million years we would conceed so many today.
"There was a lot of negative play and yet we sat too deep and allowed them to get at us.
"Once they got that first goal you could smell that the players were dropping deeper and deeper.
"We've got to do better than that"
Laws was keen to stress the whole team defended poorly and refused to single out individuals to point the blame at.
"You can't finger point to anybody in particular, we caused ourselves problems.
"That was one of the ingredients that cost us the game.
The Iron boss was frustrated his side couldn't convert one of the chances they created at the start of the second half to kill off the hosts.
"We could have scored six", Laws added.