Malaysia

Have fraud aid unit in every bank to combat online, mobile scams: PKR

Treasurer-general also moots inter-dept task force to investigate cases, relook at laws

Updated 4 years ago · Published on 13 Jun 2022 5:21PM

Have fraud aid unit in every bank to combat online, mobile scams: PKR
Lee Chean Chung suggests that BNM facilitate and expedite compensation mechanisms to ensure commercial banks are also held responsible when dealing with fraud cases. – Lee Chean Chung Facebook pic, June 13, 2022

KUALA LUMPUR – PKR has submitted a memorandum calling for Bank Negara Malaysia (BNM) to introduce and implement tighter security measures, amid increasing numbers of online banking scams.

Party treasurer-general Lee Chean Chung handed the memorandum, addressed to central bank governor Tan Sri Nor Shamsiah Mohd Yunus, to an official at BNM’s office here today.

Among the proposals put forward are for BNM to compel all commercial banks, including digital banks and e-wallet operators, to set up a financial fraud assistance unit evaluated by strict key performance indexes (KPI).

The KPI must detail how a complaint was handled, the time it took to issue a formal response, and assistance rendered during the entire investigation, the memorandum said.

“Communication with the complainant is important because they are not able to directly contact parties that have been tasked to assist them,” it said.

The Semambu assemblyman said the frequent incidents of financial fraudsters getting away with scams has reached worrying levels, further aided by the syndicates’ apparent knowledge of legal loopholes.

Despite commending BNM’s decision to set up a direct phone line for scam victims to lodge reports, and for actively sharing public service announcements on their social media pages, he said such efforts would be insufficient to combat online and mobile scams holistically.

“Besides cases that have been reported in the media and to the Royal Malaysian Police, we believe there are many more unreported cases,” said the memorandum. 

“The public’s confidence in financial institutions will begin to wane if no drastic and rapid actions are taken.”

In line with the principle of “fair redress for customers who have taken necessary steps to protect themselves and have not acted fraudulently”, PKR also proposed that BNM facilitate and expedite compensation mechanisms to ensure commercial banks are also held responsible when dealing with fraud cases.

The party also called for better collaboration and the formation of a task force consisting of BNM, police, the Malaysian Communications and Multimedia Commission, along with the Finance Ministry and its agencies to allow holistic investigations into incidents of online scams. 

It was suggested that BNM hold talks with Attorney-General Tan Sri Idrus Azizan Harun to study the feasibility and relevance of existing laws against the current trend of scams, to ensure investigations can be done efficiently while ensuring consumers are adequately protected. 

“Hopefully, these proposals will be able to assist Tan Sri and serve as input towards framing appropriate steps and subsequent actions to handle such issues of digital financial frauds,” the memorandum said. – The Vibes, June 13, 2022

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