BNM Says National Fraud Portal Will Be Ready By Mid-2024

Bank Negara

Currently, Bank Negara Malaysia (BNM) is working closely with Payments Network Malaysia Sdn Bhd (PayNet) and the financial industry in order to develop and launch the national fraud portal. The estimated time of delivery is the middle of next year.

BNM deputy governor Datuk Marzunisham Omar said that the main function of the portal will be to improve and automate the ability to trace fund movements as well as identify money mules.

“BNM is working with the financial industry and PayNet to improve the National Scam Response Centre by automating the process of detecting and tracing the movement of funds stolen from financial scam victims. We hope that by doing this, we will increase the likelihood of tracing and freezing the fund, and protect the victims from losses,” he said after the media workshop and panel discussion on financial scams at Lanai Kijang on Tuesday.

Marzunisham also made note of the rapid evolution of technology and the many potential benefits that it may offer to the financial industry and consumers alike. Unfortunately, such advances have also led to the rise of artificial intelligence (AI)-powered scams.

“This is something that we have to guard against, we don’t want to underestimate the scammers as they use various modus operandi to scam the people,” he said.

During the panel discussion, BNM’s technology risk specialist Ng Lee See also gave some words of warning on the fact that globally, AI technology has been used to digitally manipulate or generate fake visual and audio content featuring well-known personalities. While this technology has mostly been used for armless fun, the potential for it to be utilised for fraudulent purposes cannot be understated.

In some instances, it has led victims to believe that an investment scheme is genuine, therefore it is important that the public be made aware of scammer’s tactics, and to always check on investment scheme licenses prior to making investments, Ng said.

She also said that members of the public could refer to the Securities Commission’s website to verify the list of companies or individuals licensed to carry out financial planning or investment services. The public can also make use of BNM’s website to see the list of individuals or entities regulated by the central bank.

Apart from the fight against AI-driven digital crimes, Ng also states that financial institutions must keep themselves informed on current events in terms of investment laws and cybersecurity operations.

“The banking industry must also support the government’s efforts to strengthen the telecommunication infrastructure’s security,” she added.

She noted that the banking industry has done pretty well in terms of detecting scams using the Android Package Kit (APK), which has led to a decline in such cases.

“However, scammers are always changing their tactics, and scams are becoming more sophisticated and complex,” said Ng.

In other news, Bank Negara has recently imposed penalties up to RM2.7 mil for a breach of the Financial Services Act. You can find out more here.

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