I REFER to the letter “If banks can see the scam, should victims still pay?” (The Star, Sept 12; online at bit.ly/4gPh9Kz) by Shivani Sothirachagan. The letter rightly points out the unfairness of the current “authorised push payment” framework, where victims are left to bear the financial loss simply because they clicked “transfer” while being manipulated by a scammer.
The core issue is speed. Scammers rely on panic and urgency. They instruct victims to transfer money immediately, and our banking apps – designed for instant gratification – allow them to do so. By the time victims realise they have been scammed, the money has already been funnelled away through multiple accounts.
To truly solve this, we need a structural “circuit breaker”. I propose a tiered transfer system that eliminates instant transfers for high-risk transactions and replaces them with a mandatory minimum three-day pending period.
Under this system, transfers to verified businesses (such as shopping platforms, utility companies and registered merchants) would remain fast. This ensures everyday commerce is not disrupted. However, transfers to new, unverified personal accounts – the primary targets for scammers – would be held in a pending state for at least 72 hours.
During this three-day window, the victim has a crucial lifeline: time. If they realise they are being scammed, they can simply log into their app and cancel the pending transaction. The bank’s artificial intelligence system can also flag suspicious transfers during this period and freeze the funds.
Furthermore, for large transfers to new accounts, we could combine this three-day hold with requiring a physical visit to the bank branch. A trained teller asking, “Why are you sending RM50,000 to this brand new account?” is a powerful deterrent against brainwashing.
Scammers thrive on urgency. If we impose a mandatory three-day waiting period, we completely destroy their business model. The money will still be in the bank’s holding when the victim wakes up to reality.
Bank Negara Malaysia and financial institutions must adopt a shared responsibility framework that prioritises consumer protection over transaction speed. Implementing a mandatory cooling-off period for unverified accounts is the most effective way to ensure that victims do not pay a huge price for a moment of manipulated panic.
PHILLIP M. RAJOO
Seremban
