Thirteen member banks under the Association of Banks in Malaysia (ABM) and Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) have collectively thwarted fraudulent transactions amounting to RM351 million from January to October 2023.
This accomplishment highlights their unwavering dedication to robust fraud prevention measures, reinforcing their commitment to protecting customers from scams.
ABM Chairman, Dato’ Khairussaleh Ramli emphasised, “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.”
The banks’ vigilant and proactive stance against scams has been underscored by their recent launch of the #JanganKenaScam awareness campaign. This nationwide initiative aims to educate the public on various fraudulent schemes, such as e-commerce, job application, investment, impersonation, and phishing scams. The banks have successfully implemented key measures recommended by Bank Negara Malaysia (BNM) to combat financial scams, resulting in significant protection for customers.
The first National Scam Awareness campaign, launched in October 2022, saw progressive actions by banks, including the migration from SMS one-time passwords (OTP) to a more secure authentication method, tightening fraud detection rules, implementing a verification and cooling-off period for first-time e-banking service enrolments, allowing only a single registered mobile device, and establishing a 24/7 dedicated complaint channel for customers.
AIBIM President, Dato’ Mohd Muazzam Mohamed added, “Through our collective initiatives, customers have also proven to be positively impacted by the banks’ efforts through enhanced security measures in financial fraud prevention, ultimately helping them save significant amounts from being lost to scammers.”
The impact of these initiatives is illustrated through real-life accounts, such as Ms. E’s story. A 45-year-old accountant shared her experience of almost falling victim to a scam where she was misled into transferring RM47,000 by a bogus caller impersonating a bank officer. The swift response from her bank, upon discovering the scam, saved her hard-earned money.
A survey conducted by marketing research company Rakuten Insights in June to July 2023 provided interesting insights into public opinions on scams. Of the respondents, 63% had links to a scam either directly or indirectly, with 17% having been direct victims. Notably, 76% of the scam cases reported were due to victims inadvertently revealing their banking credentials.
Despite these challenges, 86% of respondents acknowledged receiving messages from banks to be on alert for banking and financial scams. The banks’ efforts in driving scam awareness received a satisfactory rating from an average of 68% of respondents across five major banking institutions. Additionally, 71% of respondents actively consume and read material from banks’ efforts in alerting and educating about scams.
ABM, AIBIM, and their member banks pledge to continue collaborating with law enforcement agencies, financial regulators, and stakeholders to spread the message about remaining vigilant against scams. They urge individuals to promptly report any suspicious activities to their respective banks and alert the National Scam Response Centre (NSRC) through the hotline at 997 if they become victims of financial scams.
