Financial Crime World

Financial Crime News Updates in Malaysia: FICO Study Reveals Growing Concerns Over Payment Scams and Identity Theft

Malaysia is no stranger to financial crimes, with payment scams and identity theft being major concerns among its citizens. A recent study by global analytics software firm FICO has shed light on the growing worries among Malaysians regarding these types of fraud.

Survey Results: Concerns Over Payment Scams

The survey found that 32% of respondents are most concerned about being tricked into making payments to criminals, which can result in instant and irreversible losses. This highlights the importance of vigilance when dealing with financial transactions online or offline.

Unsolicited Messages and Outreach

A significant number of Malaysians have received unsolicited messages, emails, phone calls, or other outreach that they believed to be part of a scam. In fact:

  • 76% of respondents reported receiving such messages
  • 54% said their friends or family members had been victims of a scam

Identity Theft: Perception vs Reality

Despite the widespread concern over identity theft, there appears to be a disconnect between perception and reality among Malaysians. The survey found that:

  • About 32% believe it is unlikely they have been a victim
  • 18% see it as possible
  • 17% are confident their identity remains untouched

Stolen Identity: Financial Implications

The study also found that only 7% of Malaysian respondents reported their stolen identity being used to open a financial account. However, this translates to over 1.6 million individuals, which is higher than the global average.

Fraud Protection: Top Considerations for Selecting Financial Services Providers

The survey underscores the importance of fraud protection in selecting financial services providers. Ease of use and good fraud protection ranked as top considerations, beating other factors such as:

  • Good customer service
  • Strong anti-money laundering policies
  • Sound green/environmental policies
  • Ethical use of customer data
  • Behaving fairly
  • Good value for money

Study Methodology and Implications

The study was conducted in November 2023 with a sample size of 1,000 Malaysian adults, along with approximately 12,000 other consumers from various countries. The results have significant implications for financial institutions and individuals alike, highlighting the need for enhanced fraud protection measures to prevent financial losses and identity theft.

In conclusion, the FICO study highlights the importance of staying informed about financial crimes and taking proactive steps to protect oneself against payment scams and identity theft. By being aware of these risks, Malaysians can better navigate the financial landscape and avoid falling victim to fraudulent activities.