Common Financial Scams in Malaysia: A Growing Concern

Malaysians have fallen victim to scammers to the tune of RM415 million just in the first seven months of 2022, a staggering figure that has prompted Bank Negara to take drastic measures.

The Impact of SMS-Based Authentication

The central bank has issued a directive to all Malaysian banks to abandon SMS-based authentication for online banking services, citing the need for more secure methods. This decision comes as no surprise, given the ease with which scammers can exploit this vulnerability.

A More Reliable Approach: FIDO

According to Ubaid Mustafa Qadiri, Head of Technology Risk & Cyber Security for KPMG in Malaysia, FIDO (Fast Identity Online) is a more reliable approach compared to SMS-based one-time passwords. The system allows customers to restrict their online transactions and authentication to only registered devices, thereby reducing the risk of financial frauds and scams.

The Growing Concern of Financial Scams

The proliferation of financial scams in Malaysia has reached alarming levels, with experts warning that the problem will continue to worsen unless urgent measures are taken. As Malaysians increasingly rely on digital channels for financial transactions, it is crucial that they take proactive steps to protect themselves from these sophisticated schemes.

What You Can Do to Stay Safe

• Be cautious of unsolicited calls or messages asking for personal or financial information
• Verify the authenticity of online banking platforms and apps before entering sensitive information
• Use strong and unique passwords for all accounts
• Keep your devices and software up-to-date with the latest security patches
• Monitor your account activity regularly to detect any suspicious transactions

By taking these precautions, Malaysians can significantly reduce their risk of falling victim to financial scams. It is essential that we stay vigilant and proactive in protecting our personal and financial information in this increasingly digital age.