Financial Crime World

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Malaysia’s Banking Sector Cracks Down on Fraudulent Transactions, Saves Customers RM351 Million

Kuala Lumpur - In a major victory against financial scams, Malaysia’s banking industry has successfully prevented fraudulent transactions worth RM351 million from January to October last year. The 13 member banks under the Association of Banks in Malaysia (ABM) and Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) have implemented robust fraud prevention measures, ensuring customers’ financial wellbeing.

Detection and Prevention Efforts

The detection and prevention actions by banks saved customers from being defrauded through various fraudulent schemes such as:

  • E-commerce scams
  • Job application scams
  • Investment scams
  • Impersonation scams
  • Phishing scams

Launch of #JanganKenaScam Awareness Campaign

The banking industry’s #JanganKenaScam awareness campaign was launched in October 2022, following Bank Negara Malaysia’s (BNM) guidelines. The five key measures implemented by banks included:

  • Migrating from SMS one-time passwords (OTP) to a more secure authentication method
  • Tightening fraud detection rules
  • Verifying and cooling-off period for first-time enrolment of e-banking services or secure devices
  • Allowing only a single mobile device or secure device to be registered
  • Establishing a 24/7 dedicated complaint channel for customers

Quotes from ABM Chairman and AIBIM President

ABM Chairman Dato’ Khairussaleh Ramli said:

“The united efforts in creating an environment that is more alert to and able to avoid scams 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.”

AIBIM President Dato’ Mohd Muazzam Mohamed added:

“Through our collective initiatives, customers have been positively impacted by our efforts, ultimately helping them save significant amounts from being lost to scammers.”

Customer Experience

One customer, Ms. E, a 45-year-old accountant, shared her harrowing experience of how she was almost scammed out of RM47,000 from her account. She praised her bank’s swift response in canceling the transaction and saving her hard-earned money.

Rakuten Insights Survey Findings

The Rakuten Insights survey conducted in June to July 2023 found that:

  • 63% of Malaysians have links to a scam either directly or indirectly
  • 17% have been direct victims of banking or financial scams
  • 76% of the scam cases were due to victims revealing their banking credentials by mistake

Ongoing Efforts

The banks will continue to work closely with law enforcement agencies and financial regulators to spread awareness on fraudulent transactions and urge individuals to report any suspicious activities promptly to their respective banks.