Enhancing vigilance on scams | The Star

PETALING JAYA: The local banking sector will further intensify vigilant fraud prevention measures going forward to help safeguard customers’ financial well being, say two banking associations.

From January to October 2023, 13 member banks under the ambit of Association of Banks in Malaysia (ABM) and Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) had successfully blocked or prevented fraudulent transactions worth RM351mil and protected customers from scams.

In a statement yesterday, ABM and AIBIM said the detection and prevention actions by banks had saved customers from being defrauded of their funds through various fraudulent schemes such as eCommerce, job applications, investments, impersonation as well as phishing scams.

Given the success in fending off spurious transactions and scams worth more than a third of a billion ringgit in 10 months, ABM chairman Datuk Khairussaleh Ramli said the association aims to further fortify the foundations of Malaysia’s banking ecosystem, with stronger collaboration and adherence to industry best practices.

Khairussaleh, who is also Malayan Banking Bhd (Maybank) group president and chief executive said: “The united efforts in creating an environment that is more alert to, and able to avoid scams by ABM and AIBIM reflect the associations’ and member banks’ collective dedication to creating a secure banking environment, where customers can have trust in the safety of their financial transactions.”

Concurrently, BIMB Holdings Bhd chief executive officer and AIBIM president Datuk Mohd Muazzam Mohamed remarked that the collective initiatives of member banks in providing enhanced security measures for fraud prevention have positively impacted customers.

To put into perspective, the first National Scam Awareness campaign which was launched in October 2022, have seen lenders progressively implementing five key measures propounded by Bank Negara to combat financial scams.

Among a flurry of measures initiated by the campaign consisted of migrating from short- messaging service one-time passwords to a more secure authentication method; allowing only a single mobile device or secure device to be registered for e-banking; as well as a 24/7 dedicated complaint channel for customers.

Commenting on the announcement by ABM and AIBIM, chief investment officer at Tradeview Capital Nixon Wong commended the banking industry for having taken the necessary steps to enhance the security of account access – by implementing multiple-factor authentication – making it more challenging for scammers to conduct fraudulent activities.

However, he suggested that advanced fraud detection systems that analyse patterns and behaviors should be utilised to identify potential fraudulent activities, with alerts triggered for further investigation in the case of unusual transactions or deviations from normal spending patterns.

Calling on customers and members of the public to also play their part going forward, he said it is crucial to stay updated on the latest scam tactics and techniques by following various newsflows, and to remain vigilant against all types of scams.

“Obviously, it is important to exercise caution and avoid clicking on links or downloading attachments from unfamiliar or suspicious sources, and also when sharing personal information on social media, as scammers may exploit it for targeted attacks,” he told StarBiz.

He also stressed the importance of regularly reviewing bank and credit card statements for any unauthorised or suspicious transactions, on top of being sufficiently disciplined to be skeptical of offers that seem too good to be true, especially those promising quick and high returns on investments, with skepticism.

Wong added: “Be wary of investment opportunities guaranteeing returns, and conduct thorough research to stay vigilant against potential scams.”

His point on being watchful with social media postings was noted by an analyst from a local bank-backed research house, who commented that it is all the more important in the present information age to be on guard.

“There is no denying that social media users find it thrilling to post updates about themselves, especially if they have made new acquisitions.

“However, aside from a quick dopamine rush gained from ‘likes’ and pleasant comments, we are exposing information about ourselves to people who may carry malicious intent,” she said.

According to ABM and AIBIM, customers and the public have also been encouraged to join in the crusade against financial scam through messages from banks on cognisance of various types of scams and corresponding scam mitigation actions, through various mass and social media platforms as well as various bank touchpoints.

Meanwhile, citing a survey conducted by marketing research company Rakuten Insights conducted in June to July 2023 from over 1,200 members of the public, ABM and AIBIM highlighted that 63% of Malaysians have links to a scam either directly or indirectly.

Of interest, respondents mentioned that in 76% of the scam cases they are aware of were due to victims revealing their banking credentials by mistake, allowing scammers to gain access to their finances.

“Across five major banking institutions, an average of 68% of respondents rated the banks’ effort in driving scam awareness as satisfactory, in their combat against fraud and scams.

“Furthermore, 71% of these respondents do consume and read material from banks’ efforts in alerting and educating about scams. Ultimately most respondents feel that the news and common sense are the most important in identifying scams,” said ABM and AIBIM.

Looking ahead, ABM, AIBIM and their member banks said they will continue to work closely with law enforcement agencies and financial regulators including Bank Negara, the police, the Malaysian Communications and Multimedia Commission, and CyberSecurity Malaysia to help spread the message that customers should always remain vigilant and exercise caution while conducting financial transactions.