When PIDM does not protect


ON April 1,2021, the Federation of Malaysian Consumers Associations (Fomca) and National Consumer Complaints Centre (NCCC) alerted the public about the sudden spike in scam-related complaints and asked them to be cautious and remain alert of such scams.

Perbadanan Insurans Deposit Malaysia (PIDM), as a statutory body that provides protection for financial consumers, is concerned about this issue.

PIDM wishes to inform the public that it only protects deposits kept in banks and with financial institutions that are member institutions of PIDM. This is in accordance with the mandate given to PIDM under the Malaysia Deposit Insurance Corporation Act 2005.

Depositors may check the list of PIDM member institutions at:

> https://www.pidm.gov.my/en/for-public/deposit-insurance-system-dis/member-banks/ (for the list of member banks); and

> https://www.pidm.gov.my/en/for-public/takaful-and-insurance-benefits-protection-system/insurer-members/ (for the list of insurer members).

PIDM also wishes to emphasise that it does not protect investments, including the more recent digital investment products, such as e-wallets, tokenised funds and cryptocurrencies, as of now.

Through our monitoring, PIDM has also come across investment companies that misuse PIDM’s logo and reel in unsuspecting consumers by making them believe that those “investment” products are protected by PIDM.

Depositors are encouraged to check the list of “investments” that misuse PIDM’s logo at https://www.pidm.gov.my/en/awareness-initiatives/financial-consumer-alert/financial-consumer-alert-2-1/.

To limit the risk of misuse, PIDM provides physical copies of its decals and logo only to its member institutions. They are required to be displayed at PIDM member institutions’ premises and offices.

Members of the public are advised to be vigilant and refrain from sharing information regarding their financial circumstances on their social media accounts, in particular when they involve huge amounts of money. Without realising it, you may become a target for scammers who now have information about your savings and/or investments.

Members of the public are also advised to be careful and exercise caution before putting money into an “investment”. If you are unsure, hold on to the money until you are certain about the authenticity of that investment product.

Here are some tips to remember:

1) No bank, takaful company or insurance company will ask you to pay for PIDM protection, and especially not online.

2) They will also not ask for your personal information such as account number, credit/debit card number, IC number, social security number or password.

3) Always refer to the official source for information. You can get in touch by contacting the correct e-mail and phone number. These can be found on official websites or on your bank statement.

4) Before making any online payment, check the bank account or phone number of the individual you are dealing with on Polis Diraja Malaysia’s “Semak Mule” app at https://ccid.rmp.gov.my/semakmule/.

Make sure that you are not dealing with a scammer.

Always be suspicious whenever someone unexpectedly contacts you and asks for your personal information. Regardless of how authentic an e-mail or website might look, a rule of thumb is to only respond to e-mails, text messages, voice mail or calls from a known individual or organisation.

To reiterate, PIDM does not protect money that is lost to scams. It’s better to be careful than to regret.

IVLYNN YAP

General manager

Communications and Public Affairs

Perbadanan Insurans Deposit Malaysia

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