As digital payments become increasingly integral to our daily lives, the convenience they offer comes with a significant challenge: the rising threat of online financial scams. Scammers are becoming more sophisticated, targeting unsuspecting consumers through phishing, malware, and social engineering tactics.

To address these threats, Bank Negara Malaysia (BNM) introduced 5 key measures to combat financial scams in 2022. Since then, the Association of Banks in Malaysia (ABM), the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), and the Association of Development Finance Institutions Malaysia (ADFIM), representing all banks in Malaysia, have pledged their concurrence and full support for these 5 key measures. These measures provide extra layers of protection, empowering consumers to navigate the digital landscape with greater confidence. 

So how exactly are banks protecting you from financial scams? Here are the five key measures as directed by BNM: 

1. Strengthening Fraud Detection Rules

Banks have enhanced their fraud detection systems to identify suspicious transactions in real time. Should a potentially fraudulent transaction occur, customers are promptly notified for verification through push notifications, SMS, or even via an immediate phone call from the bank. This proactive approach stops scams in their tracks, ensuring funds remain secure.

ABM has also recently announced that banks will be rolling out “malware shielding” features on their mobile banking apps as a preventive security measure. This feature ensures that when high-risk malware and suspicious remote access on customer devices are identified, access to banking apps will be temporarily restricted – providing even more protection against fraudulent transactions. 

2. Providing A 24/7 Hotline And Killswitch

Time is of the essence in scam situations, which is why banks now offer dedicated 24/7 hotlines for customers to report incidents immediately. Additionally, many banks have introduced a “kill switch” feature in their apps. This allows users to instantly revoke all online banking access if unauthorised transactions are detected, giving them control over their financial safety.

You can now also contact the National Scam Response Centre (NSRC) at 997 if you’ve been scammed. The recently launched National Fraud Portal (NFP) by BNM, PayNet, and 28 other financial institutions is an integrated platform that strengthens the operational capabilities of the National Scam Response Centre. NSRC operations are now equipped with an end-to-end automated process from managing fraud reports, validating and tracing stolen funds, to sharing alerts among financial institutions to trigger prompt action. This has helped to significantly reduce fund-tracing time, and boost fund recovery rates. 

3. Allowing Registration On A Single Mobile Or Secure Device

To prevent scammers from accessing accounts via different devices, banks restrict online banking registration to a single, secure mobile device. This measure ensures that only genuine transactions are authorised. Banks also require stringent verification processes for device changes, ensuring such requests are legitimate and initiated by the account holder. These advanced verification processes range from in-app digital token authentication to e-KYC (Know Your Customer) solutions that may involve biometric authentication, such as fingerprint verification or Face ID.

4. Adding Verification And Cooling-Off Periods For First-Time Enrolments

When customers enrol in online banking services for the first time, banks implement a cooling-off period that usually lasts for 12 hours. During this time, online banking transactions are restricted. This buffer period protects customers from scams that exploit stolen credentials, providing time to report unauthorised activity before any funds are transferred.

5. Migrating From SMS OTPs To More Secure Authentication Methods

The reliance on SMS one-time passwords (OTPs) is being phased out in favour of more secure in-app authentication methods. This shift addresses vulnerabilities where scammers intercept or erase SMS-based OTPs through phishing or malware attacks. By adopting advanced authentication solutions, banks are further fortifying the security of online transactions. Banks also encourage taking additional measures including keeping your banking app updated, avoiding public Wi-Fi for transactions, and using biometric authentication if available.

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Stay Vigilant, Stay Protected

With these robust measures in place, banks are actively combating financial scams, offering an added layer of protection to ensure the safety of all your online banking activities. However, your role in staying vigilant is equally important. If you suspect you’ve fallen victim to a scam, immediately contact the National Scam Response Center (NSRC) at 997 or your bank’s hotline.

PayNet is leading the charge through a multi-faceted approach that includes collaboration with various stakeholders, ongoing education for the communities, implementation of robust security measures, and the use of data-driven strategies. PayNet is committed to supporting BNM’s efforts in combating financial scams to safeguard the integrity of Malaysia’s financial system.

Learn more about scam prevention from #JanganKenaScam’s website here 

• TAGS:
• #JanganKenaScam Campaign
• BNM
• NSRC
• PayNet