SHAH ALAM - The process of refunding money to victims of online fraud or scams must go through a detailed and fair investigation by financial institutions, says Bank Negara Malaysia (BNM).
The central bank explained that this step ensures that provisions for fraudulent losses and unauthorised transactions were fair, based on robust and transparent investigations to protect consumers' rights.
"This also supports a situation where the parties involved, whether financial institutions or customers, responsibly fulfill their obligations and roles to prevent fraud.
"Additionally, this measure emphasises shared responsibility for unauthorised transactions arising from users' negligence and weaknesses in the banks' fraud detection mechanisms.
"This approach prevents the moral hazard that may arise if refunds for unauthorised transactions are automatically guaranteed," BNM said in an exclusive statement to Sinar.
On Nov 11, Sinar columnist Wan Izar Haizan, through the Pena Nurani column, discussed the proactive measures taken by the United Kingdom (UK) government to address scammer issues by holding banks accountable and ensuring they cannot shirk their responsibilities in protecting scam victims.
In the article titled 'Refunding Scam Money', Wan Izhar explained that UK banks were allowed to delay suspicious transactions for up to three days for investigation purposes.
Scam victims could demand banks to reimburse all stolen money up to a maximum of £85,000.
At the same time, banks could claim the reimbursed amount from the recipient bank used by the scammers during the transaction.
Explaining more on the matter, BNM stated that any compensation depends on the results of investigations and was subject to independent review.
However, BNM noted that Malaysia has the capability, through the National Fraud Portal (NFP), to trace stolen funds more quickly and freeze accounts, thereby preventing the money from disappearing.
"So far, the portal has had a positive impact, including a 75 per cent reduction in the time taken to trace stolen transactions.
"There has also been a 34 per cent monthly increase in the average amount of money temporarily frozen and a 37 per cent rise in the detection of mule accounts,” BNM added.
Furthermore, recent amendments to the Criminal Procedure Code (Act 593) have enhanced the National Scam Response Centre (NSRC)’s efficiency in blocking the flow of stolen funds.
The amendments, BNM explained, also grant investigators comprehensive powers to issue seizure orders to financial institutions, prohibiting any transactions and freezing any suspected stolen accounts during the investigation period.
What should you do if you realise you’ve been scammed?
1. Cancel upcoming transactions
Stop any recurring transactions if applicable. No further funds should leave your account.
2. Gather evidence
Collect and save conversation records, emails, receipts, invoices, bills, websites, addresses, names, and anything relevant. The more evidence you gather, the better.
3. File a police report immediately
Lodge a police report or report to the relevant authorities with evidence. You can also contact the National Scam Response Centre (NSRC) via hotline 997, but a police report is required for further action.