Financial Crime World

Malaysian Banks Prevented RM383 Million in Fraudulent Transactions in 2023, Says Association of Banks

In a remarkable achievement, 15 banks in Malaysia successfully blocked suspicious and fraudulent transactions worth a staggering RM383 million from January to December last year, according to the Association of Banks in Malaysia. This impressive feat highlights their unwavering commitment to robust fraud-prevention measures.

Key Factors Contributing to Success

Datuk John Chong, chairman of the Industry Task Force on Measures to Combat Financial Scams and Maybank group chief executive officer of global banking, attributed the success to:

  • Implementation of various security measures
  • Tightening of fraud monitoring parameters
  • Heightened counter-fraud controls

Reduction in Unauthorized Online Banking Transactions

According to Bank Negara, there was a remarkable 58% reduction in unauthorized online banking transactions reported to the National Scam Response Centre over a five-month period. This significant decrease is a testament to the banks’ efforts to stay ahead of scammers and protect customers from financial losses.

Measures Implemented by Banks

Banks have implemented the following measures propounded 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 Protocols Implemented by Banks

Banks have also proactively put in place other security protocols, including:

  • 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

These measures have enabled banks to prevent a significant amount of fraudulent transactions and protect customers from financial losses. The success is a testament to the banks’ commitment to staying ahead of scammers and ensuring the security of their customers’ transactions.