Analysts: Devise Future-Proof Policies To Protect Consumers From Banking Fraud
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(Image: BBC)

Some analysts have urged banking institutions to further strengthen their collaboration and devise future-proof policies in an effort to protect consumers from banking fraud.

According to criminal analyst Kamal Affandi Hashim, banks as well as the government must come together to future-proof the banking system by employing forward-thinking policies. He acknowledged that while some cases involve consumers being duped into performing fraudulent transactions, the fact remains that the banking system has been compromised.

“We should be asking the risk management group at each bank as to what they are doing,” Kamal Affandi further said, adding that banks should intensify their Suspicious Transaction Reporting (STR) for any transactions amounting to RM25,000 and above to prevent fraud. 

Meanwhile, cybercrime analyst from Universiti Utara Malaysia, Associate Professor Dr Mohamad Fadli Zolkipli noted that the security of Malaysia’s banking system is generally under control. He, however, stressed that banks must constantly enhance their systems, especially as fraudsters will always explore the latest technology and tactics to steal customers’ money.

(Image: Bloomberg)

Therefore, Dr Mohamad Fadli said that banks must regularly improve and diversify their user verification methods, system defence, and incident management, to mitigate fraud. For instance, he suggested that every bank should have a Cyber Threat Intelligence (CTI) team to monitor all activities on its servers and digital infrastructure. 

“If a suspicious incident occurs, digital forensics methods need to be applied to track the attacker, and a report on the latest trends of the attacker’s practice must be lodged,” Dr Mohamad Fadli explained, adding that the information can also be used to prevent fraud cases of a similar nature.

Additionally, Dr Mohamad Fadli emphasised that banks have the autonomy to set up technology and security measures based on the current needs – provided that they meet the cost, function, and expertise required. This is in addition to the banking policies and standard operating procedures (SOPs) set by Bank Negara Malaysia (BNM) that must be followed by all banks.

Finally, Dr Mohamad Fadli remarked that banks should be encouraged to share their best practices related to cybersecurity and online banking in order to improve the quality and security of the banking services. “It should be understood that there is no single solution to curbing system intrusion or online money theft,” he also said, highlighting that cybersecurity technology can help slow down or complicate the attack by fraudsters.

(Source: New Straits Times)

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