Speaking to reporters at BNM’s main entrance, Semambu assemblyman Lee Chean Chung said, firstly, BNM should mandate all commercial banks (including digital banks and e-wallets) to establish a dedicated unit to help with financial fraud.

He added that this unit should have strict KPIs for handling customer complaints, with set response times, as well as provide assistance throughout the investigation.

“Establishing contact with victims of online financial fraud is very important, as many of them have complained about being unable to contact the relevant departments in the bank to assist them,” he said.

Lee added that BNM should also facilitate a mechanism and a time period to provide reparations to victims if banks are found to be responsible for the customer losing money through online financial fraud.

Additionally, he suggested that BNM should take the initiative in establishing a multi-stakeholder task force.

“The task force should comprise the police, the Malaysian Communications and Multimedia Commission (MCMC), finance ministry, and other relevant agencies, so that these issues can be handled holistically.”

Lastly, Lee said BNM should initiate discussions with the attorney-general to review the suitability of the Acts surrounding online financial fraud and revise them to be in line with current needs.

“These financial fraudsters are a new trend, but the Acts we use to address them are old. So, we have to update them.

“They (financial fraudsters) do not just have an advanced modus operandi for fraud, but they also understand the existing legal loopholes.”

On Friday, the central bank said that it required all licensed banks to adopt high standards of security, particularly for internet and mobile banking services.

This included conducting routine security reviews and following advisories issued by BNM to financial institutions to enhance existing controls and ensure adequate protection against the latest threats, while maintaining efficient services for customers.