Financial Crime World

Malaysia’s Banks Foil RM383 Million in Fraudulent Transactions

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The Association of Banks in Malaysia announced today that the country’s financial institutions successfully prevented suspicious and fraudulent transactions worth RM383 million from January to December last year.

Unwavering Commitment to Fraud-Prevention Measures

According to Datuk John Chong, chairman of the Industry Task Force on Measures to Combat Financial Scams, this achievement by 15 banks in Malaysia highlights their unwavering commitment to robust fraud-prevention measures. Chong, who is also the Maybank group chief executive officer of global banking, attributed the success to the implementation of various security measures, tightening of fraud monitoring parameters, and heightened counter-fraud controls.

Key Measures Implemented by Banks

The banks have implemented five key measures recommended by Bank Negara since July last year to combat scams:

  • Migrating from SMS one-time passwords
  • Tightening fraud detection rules
  • Allowing only a single mobile device or secure device to be registered
  • Verification and cooling-off period for first-time enrolment for ebanking services or secure devices
  • 24/7 dedicated complaint channel for customers

Additional Security Measures Implemented by Banks

In addition, the banks have proactively put in place other security measures:

  • Refraining from sending SMS or emails with hyperlinks
  • Enforcing mobile applications to only operate on a secure version of operating systems
  • Kill switches
  • Brand monitoring
  • Verification of secure authentication methods at ATMs, followed by a cooling-off period

Significant Reduction in Unauthorized Online Banking Transactions

Bank Negara reported a 58% reduction in unauthorized online banking transactions over a five-month period, citing improved efforts by financial institutions. This achievement demonstrates the effectiveness of the measures implemented by banks to combat fraud and protect customers’ financial information.

Overall, the success in preventing fraudulent transactions highlights the importance of robust fraud-prevention measures and the commitment of Malaysia’s banks to ensuring the safety and security of their customers’ financial information.