Banks must rethink fraud controls as AI risks rise

THE recent Sessions Court ruling ordering a local bank to pay RM166,000 for failing to monitor anomalous transactions represents a critical inflection point for corporate governance in Malaysia.

By holding the institution liable for ignoring sudden, uncharacteristic account activity, the court effectively dismantled the legacy defence that merely having a secure system, such as sending automated SMS alerts, absolves an organisation of its duty of care.