Kuala Lumpur: Enhanced security controls enabled the banking industry to avert over RM399 million in attempted fraudulent transactions in 2024, Bank Negara Malaysia (BNM) said. Such frauds include main scam cases reported to the Royal Malaysia Police (PDRM), namely telecommunication scams (31.6 percent), e-commerce scams (30.6 percent), loan scams (15.4 percent), investment scams (13.9 percent), love scams (3.9 percent), and malware and phishing (4.7 percent).
According to BERNAMA News Agency, Malaysia has advanced its fight against online fraud since 2022 through concerted efforts to strengthen security controls in financial institutions. These measures include implementing preventive strategies across all banks and recently extending them to major e-money issuers, which have yielded positive outcomes. The number of fraudulent, unauthorized transactions involving malware and phishing reported to the central bank declined by 52 percent in 2024.
BNM emphasized that vigilant and proactive consumers were key to minimizing fraud, as more than 95 percent of online fraud cases in Malaysia involve authorized transactions. Since authorized fraud patterns can closely resemble genuine transactions, financial institutions face significant challenges in identifying and blocking fraudulent transactions without disrupting the payment system. Therefore, consumer education and awareness are deemed the most effective ways to prevent such scams.
BNM advised consumers to take proactive measures, such as resisting deals that are “too good to be true,” heeding scam warnings from friends, family, and banks, and practicing good cyber hygiene by not sharing passwords or personal credentials and avoiding suspicious links.
Looking ahead, BNM stated that tackling online fraud would require a whole-of-nation approach, with ongoing efforts to strengthen fraud prevention, enhance enforcement, and boost consumer awareness. The industry is already working to enhance fraud prevention and enforcement by leveraging technology and improving information sharing.
Consumers will play a vital role as the first line of defense against fraud by staying vigilant and proactive, helping to prevent fraud, and creating a safer digital payment ecosystem. Collective efforts are essential to strengthening resilience against this financial threat, BNM concluded.