PETALING JAYA: Banks need stronger preventive measures to combat fraud with the growing use of AI in scams, say experts.
National Cyber Security Agency (Nasca) chief executive Dr Megat Zuhairy Megat Tajuddin said strengthening verification processes through a trusted digital identity ecosystem could make it harder for scammers to exploit stolen or fake identities.
“One aspect that I see is the collaboration between MyDigital ID and financial institutions through the regulatory sandbox environment, where MyDigital ID is being explored as an e-verification mechanism to reduce identity fraud, impersonation and misuse of mule accounts in financial scams,” he said.
Megat Zuhairy said provisions under the Cybercrime Bill scheduled for tabling in Parliament next month was aimed at curbing the use of AI-enabled identity impersonations which had been exploited to facilitate scams and fraud.
Cybersecurity expert Fong Choong Fook said the use of AI-generated deepfakes, such as video and voice cloning, was becoming the norm, with scammers creating highly convincing phishing content.
Fong said if a bank account was exhibiting suspicious behaviour, such as a sudden increase in funds within a short amount of time, that should be a red flag.
Customers can check for suspicious banking accounts on the SemakMule portal.
Malaysia cybersecurity community rawSEC chairman Tahrizi Tahreb said the Sessions Court ruling showed that banks were still reacting to fraud when it happens, instead of having more effective preventive measures.
Instead, banks should move beyond fixed rules such as transaction limits, since scammers could learn these thresholds and structure transfers to avoid triggering alerts.
