MALAYSIA’S record RM2.8 billion in financial scam losses in 2025 has been largely driven by cases in which victims themselves authorised the transactions, highlighting a critical gap in consumer awareness rather than banking system failures.
According to Bank Negara Malaysia’s 2025 Annual Report, 95 per cent of online fraud cases fall under “authorised transactions”, where individuals willingly transfer money after being manipulated by scammers.
These cases often involve schemes such as romance scams or fraudulent investment opportunities, where victims act under coercion or undue influence.
Explaining the psychological tactics used by criminals, the report stated: “Scammers use social engineering tactics to manipulate emotions such as greed, fear, or love, making individuals more vulnerable to fraud.”
Because these transactions are initiated and approved by customers themselves, they fall outside the protection framework of the Policy Document on Ensuring Fair Treatment for Victims of Unauthorised e-Banking Transactions (SEFT), which came into force in October 2024.
The policy only covers unauthorised transactions involving system breaches carried out without the victim’s knowledge.
The findings underscore that the most effective defence against the vast majority of scams lies not in banking safeguards, but in public awareness and financial literacy.
Consumers are urged to adopt basic precautions such as safeguarding passwords, avoiding suspicious links, and pausing to assess offers that appear too good to be true.
Victims who realise they have been deceived are advised to immediately contact their bank or the National Scam Response Centre (NSRC) via hotline 997.
In 2025 alone, the NSRC successfully blocked 162,642 mule accounts believed to be used by criminal networks.
For the future, Bank Negara Malaysia is reviewing whether to expand the scope of SEFT to better support vulnerable consumers, considering varying levels of digital financial literacy and the evolving scam landscape.
However, the central bank is proceeding cautiously amid concerns that broader protections could inadvertently reduce vigilance among users. - April 4, 2026
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