AUTHORITIES are looking to digital identity verification as a critical line of defence against the country's escalating online fraud problem, with police expressing confidence that widespread adoption of MyDigital ID could make it substantially harder for scammers to impersonate victims and exploit weaknesses in digital transactions.
Commercial Crime Investigation Department (CCID) Director Datuk Rusdi Mohd Isa said police have already held a series of engagement sessions with MyDigital ID representatives to explore broader implementation of the platform within the banking and financial sectors.
According to Rusdi, stronger identity authentication could become a decisive factor in reducing fraud cases that increasingly rely on stolen, fabricated or manipulated personal information.
“We believe that when MyDigital ID is fully utilised, it will become one of the mechanisms capable of preventing scams from occurring,” he said during the Bank Heroes #jangankenascam Appreciation Ceremony.
He said the digital identification platform incorporates multiple security layers that would be extremely difficult for criminal syndicates to replicate, making it a potentially effective safeguard against identity fraud.
“We strongly believe that the security features embedded within the system are difficult for scammers to imitate and can serve as an effective mechanism to prevent fraud,” Kosmo! cited him saying.
The push for stronger digital identity protections comes as financial institutions report growing concerns over the increasing sophistication of cybercriminals, particularly the use of artificial intelligence to deceive victims.
Maybank Group Chief Executive Officer of Community Financial Services Syed Ahmad Taufik Albar warned that fraud syndicates are increasingly deploying AI-powered technologies, including deepfake voice and video impersonations, alongside phishing attacks designed to steal sensitive personal and financial information.
“At the same time, we continue to invest in strengthening our capabilities, including the use of AI to detect and combat scams,” he said.
The remarks highlight the escalating technological arms race between financial institutions and criminal networks, with both sides increasingly relying on advanced digital tools to either perpetrate or prevent fraud.
Separately, Rusdi cautioned against assuming that victims of online scams are automatically entitled to compensation following recent court decisions involving financial institutions.
He stressed that each case must be assessed on its own merits and factual circumstances.
According to him, a court ruling ordering a bank to compensate a scam victim should not be interpreted as establishing a blanket precedent for all fraud-related claims.
Rusdi also urged consumers to remain vigilant when purchasing concert tickets and other high-demand items online, advising the public to deal only with authorised platforms to avoid becoming victims of fraudulent schemes.
The warning came as authorities and industry leaders honoured 68 bank officers from across Malaysia for their role in identifying and preventing fraudulent transactions.
Their interventions successfully safeguarded approximately RM139 million in customer funds, underscoring the increasingly important role frontline banking personnel play in detecting and stopping scams before losses occur.
As online fraud continues to evolve in scale and sophistication, authorities believe stronger digital identity systems, enhanced banking safeguards and greater public awareness will be essential to protecting consumers from the next generation of cyber-enabled financial crimes. - June 10, 2026
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