KUALA LUMPUR: Electronic wallet (e-wallet) providers must compensate scam victims fully within seven working days if they fail to implement Bank Negara Malaysia's (BNM) preventive measures, says Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the Finance Minister, said the requirement applies even in cases where losses are partly caused by user negligence.
"Bank Negara, together with relevant agencies and the private sector, has carried out continuous public awareness programmes across various platforms," he said in a parliamentary written reply.
"In efforts to combat financial scams, the public is urged to take precautionary measures to protect themselves from becoming victims.
"Overall, these measures reflect the government and Bank Negara’s commitment to strengthening consumer protection, improving accountability among payment service providers, and enhancing public confidence in the security of digital transactions in Malaysia."
Roy Angau Gingkoi (GPS-Lubok Antu) had asked if the government plans to strengthen protection and compensation mechanisms for scam victims involving e-wallet transactions and online payments, to enhance public confidence in the country’s digital economy.
Anwar said the government, through BNM, continuously monitors and strengthens the consumer protection framework in the digital payment ecosystem, including online banking transactions and e-wallet payments, in line with the rapid growth of the country’s digital economy.
"For preventive purposes, Bank Negara has imposed various regulatory requirements on banking institutions and eligible e-money issuers.
"These include strengthened transaction authentication methods, the implementation of a cooling-off period for high-risk transactions, device binding to a single registered device, dedicated fraud hotlines, and the introduction of a 'kill switch' function allowing users to immediately freeze accounts when fraud is suspected," he explained.
On enforcement, Anwar said the establishment of the National Scam Response Centre (NSRC) is a multi-agency initiative to coordinate rapid responses to online financial scams.
"The NSRC’s ability to trace and freeze funds has also been enhanced through the National Fraud Portal, which automates fund-tracing processes to speed up the detection and freezing of suspicious transactions," he said.
He added that the central bank’s framework also covers cases involving shared responsibility between banks and customers, with compensation determined based on each party's level of negligence and responsibility.
Under the framework, victims may also seek independent review through the Financial Market Ombudsman Service if they disagree with a bank’s decision.
Anwar said these measures, along with enhanced security controls by financial institutions, helped prevent RM1.2bil in fraudulent transactions last year alone.
There was a 26% increase in victims receiving full or partial compensation after the policy was fully implemented, he added. - Mkini
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