PETALING JAYA: With scams becoming increasingly sophisticated and AI-driven, banks are reassessing monitoring systems as scam methods evolve with new technology.
“Technology is evolving. The use of technology for good and bad is also evolving,” said head of RHB Bank group transact- ion banking Dev Raaj Shan-mugam.
He said suspicious transactions are already subject to added scrutiny before funds are allowed to move.
“Suspicious transactions are put through another level of scrutiny and verification before it is decided whether they are genuine or not,” he said.
However, such tighter controls may mean more inconvenience for customers.
“With the evolution of technology and AI, you cannot take things lightly.
“Bank Negara has advised that we need to really heighten the controls and security,” he said, citing a 12-hour cooling-off period as an example of balancing fraud prevention with customer convenience.
“The fraudsters will always want you to make payment urgently.
“The cooling-off period gives customers time to rethink their decision or validate it with a third party.”
Dev Raaj added that while banks could implement safeguards, customers also need to practise better cyber literacy and remain cautious online.
“They also have an obligation to protect themselves,” he said.
RHB group chief technology officer Wong Kwang Leh said regulators, including Bank Negara, were also raising cybersecurity expectations on banks and financial institutions.
“All banks are upgrading security controls.”
On whether banks are introducing stronger real-time behavioural monitoring and AI-based fraud detection systems, Wong said such efforts were already underway.
“We already have behavioural analytics as part of our fraud prevention.
“We continue to evaluate new solutions, even using AI capabilities,” he said, adding that banks contact customers whenever suspicious transactions are detected.
Macrokiosk co-founder and chief operating officer Datuk Henry Goh warned that AI had significantly increased both the scale and sophistication of scams.
“For banks, this is no longer just a cybersecurity issue, it is fundamentally a trust issue,” he said. Macrokiosk is an SMS gateway provider.
Goh said the industry now required a more “multilayered and risk-based approach” to fraud prevention as scams evolve.
“However, that does not mean SMS OTPs are no longer relevant.”
SMS, he said, remained an important layer within the wider authentication ecosystem due to its accessibility, immediacy and visibility.
Goh added that scams were expected to become “far more personalised, automated and convincing” as cybercriminals use generative AI tools.
He said banks would need stronger AI-powered fraud monitoring, continuous authentication systems and faster real-time customer notifications to address the problem.
