THE banking sector in Malaysia successfully thwarted over RM399 million in attempted fraudulent transactions in 2024, thanks to enhanced security measures and a proactive approach by financial institutions, according to Bank Negara Malaysia (BNM).
In its Annual Report for 2024, the central bank highlighted a significant reduction in fraud cases, notably driven by improvements in security controls across the financial services industry.
These efforts include the implementation of preventive measures at all banks, which have now been extended to major e-money issuers.
These measures have played a crucial role in addressing the rise in online fraud, which has become a prominent concern in recent years.
Fraudulent activities reported to the Royal Malaysia Police (PDRM) in 2024 showed a significant spread across various scam types.
The most common types were telecommunication scams, which accounted for 31.6%, followed by e-commerce fraud at 30.6%, loan scams at 15.4%, investment scams at 13.9%, love scams at 3.9%, and malware and phishing scams at 4.7%.
"Malaysia has made significant strides in combating online fraud since 2022, with concerted efforts to strengthen the security infrastructure within financial institutions. Preventive measures have been expanded to include major e-money issuers, producing positive outcomes," BNM said in its report.
The central bank also noted a 52% decrease in fraudulent transactions involving malware and phishing in 2024, further demonstrating the effectiveness of these measures.
However, the battle against fraud remains challenging, particularly when it comes to authorised fraud — a situation where fraudsters use legitimate credentials to carry out transactions.
BNM pointed out that more than 95% of online fraud cases in Malaysia involve such authorised transactions, posing significant hurdles for financial institutions in identifying and preventing fraudulent activities without disrupting the overall payment system.
"Because fraud patterns can often mimic legitimate transactions, financial institutions face considerable challenges in blocking them without affecting regular payments. The most effective way to combat such scams is through consumer education and awareness," the central bank explained.
BNM urged consumers to adopt proactive measures to reduce the risk of fraud. These include being cautious of offers that seem "too good to be true", following scam alerts from banks, family, and friends, and practising good cyber hygiene by safeguarding personal information and avoiding suspicious links.
Looking ahead, BNM stressed the need for a collective, nationwide approach to combating online fraud. Ongoing efforts to bolster fraud prevention, enhance enforcement, and improve consumer awareness will be critical in further reducing fraudulent activities.
The central bank also noted that the industry is actively working to improve fraud prevention technologies and foster better information-sharing between stakeholders.
"Consumers are a vital first line of defence in this fight against fraud. By staying vigilant, practicing good cybersecurity habits, and helping to create a safer digital environment, they will play an essential role in strengthening the resilience of the financial system," BNM said today. - March 24, 2025
