NFP to help tackle fraud and recover stolen funds

KUALA LUMPUR: The National Fraud Portal (NFP) is poised to enhance the operations of the National Scam Response Centre (NSRC) by automating the process of scam reporting and fund tracing.

One of the most advanced automation platforms in the region, the NFP is designed to improve the efficiency and speed of tracing stolen funds, providing financial institutions with an automated system to track funds across the financial network.

It is expected to streamline the process of identifying mule accounts, thereby enhancing the overall response to fraud, according to Bank Negara Malaysia’s (BNM) website.

One of the key features of the NFP is its capability to automate fund tracing and recovery. Through this platform, financial institutions can quickly track and prevent further transfers of stolen funds across the entire financial system.

The automated system significantly reduces the time taken for fund recovery, increasing the chances of successfully returning the money to fraud victims.

When launching the NFP on Aug 20, Finance Minister II, Datuk Seri Amir Hamzah Azizan said the portal was a major step forward in combating financial scams as it offered “secure access to vital databases, enabling faster detection and prevention of fraudulent activities”.

“By integrating financial transaction data from various sources, the NFP automatically identifies suspicious transactions, enabling institutions to act swiftly, reducing detection time and potential losses,” he said.

Since its pilot phase, the NFP has reduced the time required to track fraudulent transactions by 75%, while the amount earmarked by financial institutions for recovery has risen by 28%, or RM4mil per month.

The NFP also facilitates industry-wide information sharing, allowing financial institutions to exchange data and intelligence on fraud in real-time. This bolsters the effectiveness of fraud prevention and response efforts across the sector.

In addition, the platform supports data-driven assessments of mule accounts.

Backed by credible industry data, the NFP enhances the identification, assessment and monitoring of mule accounts, which are bank accounts used by fraudsters to move stolen funds.

With enhanced data analysis, detection rates for mule account holders have already risen by 14%.

To complement the NFP, financial institutions have agreed to adopt standardised procedures for reporting and handling mule accounts. These procedures will ensure that mule account data is managed consistently, improving the industry’s ability to address mule-related fraud.

More importantly, they ensure that victims of mule account fraud will not be denied access to essential financial services.The launch of the NFP is part of BNM’s broader strategy to tackle financial scams, reinforcing its multi-pronged approach.

Since the launch, BNM has issued a directive to financial institutions, requiring them to ensure that victims of unauthorised online banking transactions are treated fairly.

Financial institutions are expected to implement robust fraud investigation processes with improved transparency and accountability to ensure that financial institutions are held accountable when lapses occur, while also encouraging customers to remain vigilant.