KUALA LUMPUR: Banks are responsible for conducting detailed investigations into unauthorised banking transactions and cannot shift the burden onto victims of scams, says Deputy Finance Minister Lim Hui Ying.
Speaking in response to Chong Chieng Jen (PH-Stampin) in the Dewan Rakyat, Lim emphasised that banks should not blame customers for losses from online banking fraud unless there was clear evidence that the customer failed to protect his or her personal security details.
"Each fraud case will be investigated thoroughly. If a case results from weaknesses in the bank's system or risk management practices, the bank must bear those losses," she said.
"However, if there is clear evidence that the customer's negligence compromised security details, the bank should consider appropriate compensation based on the case specifics. Disputes over decisions or compensation can be taken to the Ombudsman for Financial Services (OFS)," she told the Dewan Rakyat today.
Lim said this in response to Chong Chieng Jen (PH-Stampin) who asked whether the government planned to amend laws so that banks were held responsible to bear the losses (partly/all) of the victims of bank scams that often occur.
She said Bank Negara Malaysia (BNM) recently enhanced the policies regarding unauthorised electronic banking transactions.
This includes ensuring financial institutions conduct more thorough and transparent investigations within a reasonable timeframe, as well as implementing more effective prevention controls.
"With these improvements, any compensation should consider the effectiveness of the security controls implemented by financial institutions in addressing financial fraud.
"This policy also clarifies the responsibilities of users and banks in handling online financial fraud," she said.
Lim said from 2020 to mid-2023, the banking industry received 18,238 complaints or disputes, 11 per cent of which related to financial fraud and were brought to the OFS, translating to about 2,000 cases.
Of these, she said 75 per cent had been resolved.
In response to Chong's inquiry about resubmitting 10 cases of unauthorised money withdrawals to the Finance Ministry in January 2023, Lim said, "Can. Please provide those cases to me for further action."