Banks' job to probe fraudulent transactions, not victims: MOF

 

PARLIAMENT | It is up to banks to investigate fraudulent transactions and not for scam victims to prove, said Deputy Finance Minister Lim Hui Ying.

Banks must also be responsible for losses caused by their negligence or weaknesses, she told the Dewan Rakyat.

“I would also like to emphasise here that the burden to conduct a detailed investigation to prove the wrongdoing of unauthorised banking transactions rests on the bank and not the scam victim.

“Scam victims do not need to prove that the transaction is real, but it is for the bank to prove,” Lim (above) said.

In recent years, scams have affected Malaysians at all levels, including a former deputy minister.

According to a Kini News Lab report, in 2023 alone, up to August of that year, at least RM1.3 billion was lost in about 30,000 cases of online fraud.

In response, the banking and telecommunications industries, as well as law enforcement agencies have rolled out various initiatives to combat scams.

This includes publishing the suspected bank account numbers scammers use to syphon off money, setting up a National Scam Response Centre (NSRC) and rolling out nationwide awareness programmes.

In Parliament today, Lim said all main banks have implemented the following actions since June 2023:

• Ensure that every banking transaction complies with security features such as confirming customer transactions and providing transaction notifications to customers,

• Strengthen fraud detection rules to identify suspicious transactions,

• Limit customers to only one device for authentication of online banking transactions to prevent misuse of accounts by third parties,

• Accelerate the transition towards stronger authentication for online transactions related to account opening, fund transfers and payments as well as the exchange of personal information and account establishment,

• Provide a dedicated hotline for victims to report cases of online fraud, and

• Introduce a kill switch mechanism enforced by Bank Negara that allows users to freeze their own accounts in case of suspicious activity, including if they find that their account may be accessed or used without permission.

- Mkini