Rampant internet banking fraud cases: Chong tells Putrajaya to look into banks’ security system

Chong (ight) listens as the victim tells his story.

KUCHING (June 2): The federal government must ensure the security of the internet banking system if it is serious in moving towards digitalisation and e-banking which is the foundation of the country’s economic transformation, said Democratic Action Party (DAP) Sarawak chairman Chong Chieng Jen.

In a statement, he noted that lately internet banking fraud cases were getting more rampant, creating doubts and worries about the security of banking institutions in Malaysia.

“It seems that the internet security systems of banks in Malaysia are so vulnerable that anyone can, without their knowledge, be subject to internet banking fraud and lose their savings for nothing,” he said.

Chong pointed out that internet banking fraud can in fact be avoided if the banks improve their security systems and constantly upgrade their firewall system.

“It all boils down to whether sufficient funds are allocated for such upgrading services.

“As such, it is only when the banks are made to pay the innocent victims for their losses that banks will then have the incentives to invest more on their system security. Otherwise, the banks will just pass the costs to these fraud victims,” he said.

Chong said the government must act quickly in this matter.

“Otherwise, we will continue to see such fraud cases victimising the people. Not only will we, the common people, fall victim to such fraud, the progress of the country will also be hampered as people start to lose confidence in the banking system,” he added.

He raised the issue after a victim of internet banking fraud went to him yesterday to seek his help to engage with the bank in order to seek refund of money transferred out of his savings account and credit card accounts.

The victim, surnamed Chew, discovered that there were three successive unauthorised transfers of funds from his CIMB bank account, namely one transfer of RM1,819 to Shopee, two transfers of RM1,950 and RM3,000 to U-Mobile.

He immediately informed the bank and lodged a police report.

After two weeks, the RM1,819 transferred to Shopee was refunded but the RM4,950 transferred to U-mobile was still not refunded to him.

The bank gave the excuse that it needed further investigation and delayed the refund.

Meanwhile, last month Chew also discovered that his two credit card accounts were also hacked on April 28, chalking up a total debt of RM16,296.

He did not receive any notification for the unauthorised use of his credit card accounts. He only came to know about the unauthorised use two weeks later when the banks demanded payment from him.

Chew is puzzled as to why the bank could send SMS to him demanding the payment on his credit card accounts yet failed to SMS him when the credit card accounts were hacked and used without his authorisation.

from Borneo Post Online https://bit.ly/3xmsDgL
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