KUALA LUMPUR: Banks must take full responsibility for financial fraud losses if the loss was caused by their security weaknesses, says Deputy Finance Minister Lim Hui Ying.
She said Bank Negara Malaysia (BNM) had directed financial institutions to conduct detailed and transparent investigations whenever there is a case of financial fraud.
BNM's policy now included the principle of shared responsibility for specific cases that were caused by mistakes or vulnerabilities of both the bank and customer, she added.
“This will generally cover cases resulting from the bank’s failure to block suspicious transactions, such as recurring transactions within a short time frame, or transactions at times which are unusual for the customer," she told the Dewan Rakyat on Tuesday (March 4).
“Customer negligence must have also been identified, whether it is clicking on a suspicious link or downloading files from untrusted sources.
“With this policy, the burden of losses in such cases should not fall entirely on the victim (who is) also... entitled to appropriate compensation."
She noted that investigation outcomes that do not end in a customer's favour would be subject to independent review to ensure objective assessment.
Lim added that customers who disagree with the decision or compensation by their bank have the right to file a dispute with an alternative dispute resolution service, called the Financial Market Ombudsman Service.
Datuk Seri Sh Mohmed Puzi Sh Ali (BN-Pekan) wanted to know about the government's efforts to protect the rights and interests of people who lost money because of weak bank security.
Lim also said that worryingly, 37% of respondents in a survey admitted to sharing their banking passwords with close friends, 62% ignored security features on banking websites, and 89% rarely changed their passwords.
She said results of the 2021 Financial Capability and Inclusion Demand Survey showed that customers themselves have an important role as the first line of defence against scams.
“They must remain vigilant in protecting their personal security details and are reminded not to download applications from untrusted sources.
"(They should also) change their passwords regularly.
“These improvements will not only make it fairer to both banks and customers but also foster a more aware and cautious society,” she added.
