Ensuring Fair Treatment for Victims of Unauthorised e-Banking Transactions

Bank Negara Malaysia (BNM) recognises the ongoing efforts by the industry in implementing fraud prevention measures and awareness initiatives which have gone a long way in combating financial fraud in Malaysia. Nevertheless, continued incidences in fraud cases involving unauthorised transactions performed without customers’ consent and the perceived unfair treatment by customers after falling victim to fraud could undermine public confidence in e-banking services.

Given that financial institutions (FIs) play a critical role in ensuring the security, integrity and reliability of e-banking services, it is crucial that enforcement and recovery mechanisms when fraud occurs also continue to be enhanced.

In this regard, BNM expects the industry to strengthen their practices in fraud case management to ensure victims are treated fairly. This policy document sets out BNM’s regulatory requirements that are aimed at ensuring fair treatment of fraud victims arising from unauthorised e-banking transactions through the following:
(a) Greater clarity on the obligations of the FIs and customers with respect to preventing an unauthorised transaction; and
(b) Enhanced transparency and disclosure obligations for the benefit of customers with respect to the investigation process and outcomes.

This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking