KUALA LUMPUR: Bank Negara Malaysia has set a deadline of January 1, 2017 for all payment card issuers and acquirers to enable "Chip and PIN" verification for point-of-sale (POS) transactions.
"Fraud related to the use of payment cards, online banking and cheques remained low in 2014, attributed to various measures undertaken to enhance payments security," said the central bank in its annual report for Financial Stability and Payment Systems.
Bank Negara has continued to promote consumer confidence in the use of electronic payment (e-payment) services during the year.
It said while payment fraud incidents have remained low, the public has to remain vigilance for fraudsters attempted new methods for perpetrating online banking fraud.
Under the Financial Services Act 2013, the Real-time Electronic Transfer of Funds and Securities System (RENTAS) and the National Electronic Cheque Information Clearing System (eSPICK) are designated as systemically important payment systems, the disruption of which could affect public confidence or monetary and financial stability.
These systems are subject to the Bank Negara’s oversight and regulatory requirements to preserve their integrity and reliability as critical market infrastructure.
Apart from these, Bank Negara also approves and provides oversight over a number of major retail payment systems and instruments for the purpose of promoting their efficiency, integrity and operational reliability.
These large value payment and settlement (LVPS) system and retail payment systems operated smoothly without any major disruption.
Besides continuous updating of security arrangements by banks and issuers of designated payment instruments to address emerging fraud threats, consumer protection arrangements were also enhanced, alongside a sustained programme to educate consumers on how to conduct online payments and transfers safely.