Kuala lumpur: Telecommunication service providers and digital platforms, which play a critical role in the digital ecosystem, may be included in compensating scam victims in the future, according to Bank Negara Malaysia (BNM). This initiative aims to strengthen consumer protection and uphold accountability across all parties involved, as detailed in BNM's 2025 Annual Report released today.
According to BERNAMA News Agency, BNM emphasized the importance of considering broader participation in fraud compensation to include telcos and digital platforms. In a box article titled "Fraud Resolution: Building Trust Through Shared Accountability," the central bank highlighted the practices in other countries where these sectors are part of the compensation frameworks. This approach, it noted, offers new avenues for Malaysia to explore.
In Malaysia, consumers lost RM2.8 billion to scams last year, while globally, losses reached US$442 billion in 2024. This scenario raises significant questions about responsibility and who should bear the losses when fraud occurs. Currently, BNM's compensation framework, introduced in 2024 through the Policy Document on Ensuring Fair Treatment for Victims of Unauthorised e-Banking Transactions (SEFT), focuses on unauthorised transactions.
The central bank is also considering stronger protection measures for vulnerable consumers, including assessing the potential expansion of SEFT's scope. This assessment aims to address risks faced by vulnerable groups, taking into account digital financial literacy and the fraud landscape in Malaysia.
Under the principle of joint responsibility, full compensation is provided if fraud loss results solely from gaps in a bank's security controls. However, compensation is not guaranteed in all cases. Partial compensation may be granted if the consumer shares some fault and the bank fails to act quickly to prevent further losses. Conversely, no compensation will be provided if the bank has adhered to required actions and the consumer is solely responsible, such as downloading harmful applications despite warnings, or if the consumer refuses to cooperate in investigations.
To safeguard against scams, BNM advises consumers to pause before acting, verify before clicking, keep passwords private, and report suspicious activities promptly by contacting the bank's hotline or the National Scam Response Centre at 997.