KUALA LUMPUR: While digital wallets and payment platforms are designed to provide seamless transactions and convenience, they have also become a target for scammers, raising public concerns.
PayNet chief of staff Dr Endry Lim Zhen Wen said the misuse of advanced technologies, including artificial intelligence (AI), has significantly contributed to the rise in digital fraud.
This, he said, calls for proactive measures such as the development of the National Fraud Portal to rebuild trust among users who are increasingly worried about the risks of digital payments.
"At the end of the day, as transactions grow on these platforms, we need a robust system to combat fraud. That's why we are working with stakeholders to establish the National Fraud Portal.
"While it's unrealistic to expect zero scams, we must stay vigilant. Scammers will always adapt, and with AI, the sophistication and frequency of scams are rising exponentially, increasing by thousands per cent annually," he said.
Lim was speaking during the International Regulatory Conference at a session titled "Technological Evolution in Money Markets: Interoperability and Expanding Accessibility".
He added that PayNet collaborates with trusted AI institutes abroad to develop practical solutions for tackling scams.
He also warned that publicly accessible data points could be exploited in unexpected ways, potentially putting individuals at risk.
"These are the challenges we constantly address within the industry and with leading researchers.
"Unfortunately, there aren't many cutting-edge researchers in this region. However, we are actively working with various international partners, particularly in the global north, to find effective solutions," he said.
Boost Bank chief technology officer Shankar Krishnan said financial literacy and awareness are crucial to protect the public from falling victim to scammers.
He said underserved and suburban users need better access to information, as they often face connectivity issues.
"This includes creating awareness about the benefits of digital payments for seamless transactions and educating users to stay cautious about scams on these platforms," he said.
Shankar suggested that awareness campaigns should effectively reach users through multiple channels, such as social media and in-app notifications.
"One way to address this is by partnering with local councils, telco providers, and other entities to improve accessibility for underserved communities," he said.
Meanwhile, Maybank group chief strategy and transformation officer Dr Siew Chan Cheong said the bank had introduced a new security feature called Money Lock to enhance user protection.
He said the feature allows users to lock a customised amount in their current or savings accounts.
"Users can secure funds beyond what they need for regular or budgeted expenses. Locked funds can only be unlocked at any Maybank ATM or branch," he said.
The feature provides an added layer of security by preventing online scammers from accessing locked funds digitally.