Malaysia’s Banking Industry Scores Big in Fight Against Scams, Saving Customers RM351 Million
Kuala Lumpur, January 24, 2024 - The banking industry in Malaysia has made significant strides in combating financial scams, with a total of RM351 million worth of fraudulent transactions prevented from January to October last year. This impressive feat is attributed to the robust fraud prevention measures implemented by member banks under the Association of Banks in Malaysia (ABM) and Association of Islamic Banking and Financial Institutions Malaysia (AIBIM).
Detection and Prevention Efforts
According to data released by ABM, AIBIM, and their member banks, a total of 13 financial institutions have successfully detected and prevented various types of fraudulent schemes, including:
- E-commerce scams
- Job application scams
- Investment scams
- Impersonation scams
- Phishing scams
The detection and prevention actions taken by banks saved customers from being defrauded of their funds and provided them with peace of mind.
Industry Efforts to Combat Financial Scams
The banking industry’s efforts to combat financial scams are part of a broader initiative to create a secure and trustworthy environment for customers. In October 2022, the industry launched its first National Scam Awareness campaign, which aimed to educate customers on various types of scams and provide tips on how to avoid falling victim to them.
ABM Chairman’s Comment
“The united efforts in creating an environment that is more alert to, and able to avoid scams by ABM and AIBIM reflect the associations’ and member banks’ collective dedication to creating a secure banking environment, where customers can have trust in the safety of their financial transactions,” said Dato’ Khairussaleh Ramli, ABM Chairman.
Customer Feedback
The industry’s efforts have also been praised by customers who have fallen victim to scams. Ms. E, a 45-year-old accountant, was saved from losing RM47,000 to scammers after her bank detected and prevented the fraudulent transaction. She commended the bank for its swift response in canceling the transaction and thanked them for their efforts in combating scams.
Rakuten Insights Survey
A survey conducted by Rakuten Insights in June-July 2023 also highlighted the importance of customers being vigilant when conducting financial transactions. The survey found that:
- 63% of Malaysians have links to a scam either directly or indirectly
- 17% have been direct victims of banking or financial scams
- 86% of respondents received messages from banks alerting them to potential scams and acknowledged the importance of being aware of such schemes
The majority of respondents rated the banks’ efforts in driving scam awareness as satisfactory and consumed material from banks’ efforts in educating about scams.
Collaboration with Law Enforcement Agencies and Financial Regulators
ABM, AIBIM, and their member banks will continue to work closely with law enforcement agencies and financial regulators to spread the message that customers should remain vigilant and exercise caution when conducting financial transactions. The industry urges individuals to report any suspicious activities promptly to their respective banks so that they can take necessary actions.
National Scam Response Centre (NSRC)
Anyone who is a victim of financial scam can also alert the NSRC by calling the NSRC hotline at 997.
Conclusion
With continued cooperation between the banking industry, law enforcement agencies, and customers, Malaysia’s banking sector is well-positioned to continue combating financial scams and protecting its customers’ financial wellbeing.