Online financial fraud is becoming increasingly prevalent in Malaysia. Despite many arrests, fraud cases continue to occur, with victims losing their life savings. However, close cooperation between the authorities and the banking industry has succeeded in increasing prevention efforts and protecting the public from the threat of fraud.
For example, the #JanganKenaScam campaign launched since 2023 by the Association of Banks in Malaysia (ABM) together with AIBIM with the support of the Royal Malaysian Police (PDRM) continues to be a national awareness initiative to educate the public about the risks of financial fraud.
The effectiveness of this campaign was proven when in 2025, bank staff managed to block more than RM139 million in fraudulent transactions, thus saving many customers from huge losses. Behind that amount, there are retirement savings, children's education funds, business capital and company sales proceeds accumulated over the years by Malaysians.
Overall, the banking industry managed to block transactions worth RM1.19 billion, a three-fold increase compared to the previous year. This achievement not only proves the effectiveness of fraud prevention efforts, but also confirms the banking sector’s continued commitment to improving security technology and protecting customers from increasingly complex fraud threats.
Some of the key security initiatives that contributed to this success include:
Money Vault / Money Lock – A security function that allows customers to lock their money in a special account that cannot be transferred without additional permission. To date, more than 38,000 customers have used this feature with a security amount of more than RM600 million. It works like a digital safe that provides peace of mind because their money is more secure.
Malware Shielding – Shielding technology against cyber attacks that has successfully prevented more than 60,000 malware-related fraud attempts with a potential loss value of around RM22 million. In short, it protects customer accounts from malicious software that tries to steal information.
Kill Switch – Nearly 300,000 users have activated this function. Kill Switch allows customers to freeze accounts immediately when there is suspicious activity. This quick action has prevented almost RM7 million in losses. It is like an emergency button for account security.
Self-Security Check – A feature in banking applications that allows customers to check the security level of their own accounts. Through this function, users can identify vulnerabilities, monitor logins and take immediate corrective measures based on best security practices.
At the same time, several banks have also introduced a self-account control function that allows customers to monitor devices, sessions and login activities. Through this function, customers are empowered to detect suspicious activities more quickly, thus increasing the level of account security and awareness.
This step is very important because customers can now act immediately without having to wait for the bank. For example, they can end unrecognized login sessions or block access from suspicious devices. In this way, customers play a more active role in protecting their accounts from fraud threats.
These system improvements are also reinforced by ongoing cybersecurity education efforts. The main focus is given to small and medium-sized enterprises as they are often the target of online fraud. Through awareness programs, this group is guided to recognize signs of risk such as phishing or data fishing scams, which are attempts by cybercriminals to steal customer information, as well as other increasingly complex forms of digital fraud.
In addition, several new developments have also strengthened efforts to combat fraud. Banks have acknowledged the increasing use of artificial intelligence (AI) technology by scammers, including deepfake calls and chatbot manipulation. At the same time, banks are also investing in AI to detect and prevent fraud. This technology is now a key factor used by criminals to defraud but is also being leveraged by financial institutions to protect customers.
The MyDigital ID platform is seen as a key tool to strengthen the Know Your Customer (KYC) process. Although full integration with bank systems is still in the implementation stage and there is no specific timeline, this effort has begun and is expected to be an important milestone in verifying customer identities in the future.
A total of 68 employees from 14 banks were also recognized for their efforts to prevent fraud with a maximum limit of eight people per bank for the official event. This recognition not only motivates employees, but also emphasizes their important role as the front line in protecting customers from fraud.
The issue of customer compensation was also given attention, where banks agree to provide compensation in certain cases when there is internal weakness or negligence. However, the primary responsibility remains with consumers to always be vigilant. This approach is implemented on a case-by-case basis to ensure a balance between institutional responsibility and customer vigilance. This step shows that banks not only emphasize the technological aspects of security, but are also concerned about the protection of customer rights.
It was also shared that all bank employees are required to undergo annual training on fraud prevention. The training content now includes the use of AI in fraud and how to overcome it. With this new module, employees are better prepared to face increasingly complex modern threats including fake voice calls made by AI and chatbot manipulation. This continuous training not only improves staff efficiency but also increases customer confidence in the banking system.
