TLDR
- Prime Minister Anwar Ibrahim announced that e-wallet providers must compensate scam victims within seven working days if they fail to implement Bank Negara Malaysia's anti-fraud measures.
- The compensation rule applies even if the victim is partly responsible for the loss, aiming to boost consumer confidence in Malaysia's digital economy.
- BNM requires e-wallet issuers to have strong authentication, cooling-off periods, device restrictions, fraud hotlines, and kill switch features, supported by enhanced enforcement through the National Scam Response Centre and National Fraud Portal.
Malaysians who fall victim to e-wallet scams may be entitled to full compensation if the e-wallet provider fails to implement Bank Negara Malaysia's (BNM) required anti-fraud measures.
Prime Minister Datuk Seri Anwar Ibrahim said eligible e-money issuers must reimburse scam victims within seven working days of receiving a complaint if they are found to have neglected fraud prevention safeguards mandated by the central bank.
Interestingly, the compensation requirement could still apply even if the victim was partly responsible for the loss.
Image Credit: Anwar Ibrahim | Facebook
The announcement was made in a written parliamentary reply to Roy Angau Anak Gingkoi (GPS-Lubok Antu), who asked about the government's efforts to strengthen consumer protection and compensation mechanisms for victims of scams involving e-wallets and digital payment transactions.
According to Anwar, the measure is part of ongoing efforts to boost consumer confidence in Malaysia's rapidly growing digital economy and strengthen protections for users of online banking and digital payment services.
What anti-fraud measures are e-wallet providers required to have?
Anwar said BNM has already imposed a range of requirements on banks and eligible e-money issuers to reduce the risk of fraud and scams.
These include:
- Stronger transaction authentication methods
- Cooling-off periods for high-risk transactions
- Restricting account verification to a single registered device
- Dedicated fraud hotlines
- "Kill switch" features that allow users to immediately freeze their accounts if suspicious activity is detected
The measures are intended to make it harder for scammers to gain access to users' accounts and move stolen funds.
Image Credit: 123RF
Government stepping up anti-scam efforts
Beyond regulations imposed on financial institutions, Anwar said enforcement efforts have also been strengthened through the National Scam Response Centre (NSRC), which coordinates rapid responses to online financial scams.
Authorities have also enhanced the tracing and freezing of stolen funds through the National Fraud Portal, a system designed to automate the fund-tracking process and help identify suspicious transactions more quickly.
In addition, BNM strengthened consumer protection policies in 2024 through enhancements to its Ensuring Fair Treatment for Victims of Unauthorised e-Banking Transactions (SEFT) framework.
Featured Image Credit: Kosmo Digital, Canva
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