Clari5 Market Insights


Bank Negara Malaysia

New Measures to Combat Financial Scams in Internet & Mobile Banking

Malaysia Central Bank, BNM Announces New Measures to Combat Financial Scams

By when must banks comply with the mandate?

With immediate effect.

Why has BNM issued the new mandate?

Fraud risk is constantly evolving. Scammers are finding new ways to defraud the public including tricking bank account holders into revealing their banking details or installing malware on their devices. Of late, scams and cybercrimes such as online sales scams, online trading scams, African scams, Macau scams, BEC scams, fake loans and SMS scams have been on the rise. The number of such scams increased from 13, 703 (Losses- RM539 million) in 2019 to more than 12,000 cases between January and July 2022 (Losses- RM400 million). BNM therefore stepped-up efforts to combat financial scams and collaborate with other stakeholders.

Highlights of the mandate

BNM has announced five additional security measures for FIs to strengthen safeguards against financial scams especially in Internet and mobile banking services.

  • FIs are required to migrate from SMS One Time Passwords (OTP) to more secure forms of authentication for online activities / transactions.
  • FIs will further tighten fraud detection rules and triggers for blocking suspected scam transactions.
  • A cooling-off period will be observed for the first-time enrolment of online banking services or secure devices. During this time, no online banking activity is allowed to be conducted.
  • Customers will be restricted to one mobile or secure device for the authentication of online banking transactions.
  • FIs will be required to set up dedicated hotlines for customers to report financial scam incidents. FIs have to be more responsive to scam reports lodged by customers and facilitate efforts to recover and protect stolen funds, including to work with relevant agencies to prevent further losses.

How Clari5 helps FIs in Malaysia quickly comply with BNM’s mandates

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