While the benefits of a digital world are to be lauded, these have also given rise to many scams and fraud cases. Interestingly, it is not only the elderly – often perceived to be less familiar with technology – who fall victim to such issues.

Citing a 2023 Deloitte report, Time magazine said while younger, digital savvy individuals may be more familiar with the Internet, the Gen Zs—born between 1995 and 2012—are more than three times as likely to fall for online scams compared to their older counterparts.

Part of the reason for this is the large amount of time spent on social media which increases the likelihood of them coming across fake “investment” advertisements.

In Malaysia, scams and fraud cases have indeed seen a significant increase in recent times. A total of 34,497 cases of online scams involving losses of RM1.2 billion were reported nationwide in 2023.

Meanwhile, there was a huge jump in data thefts in the country last year compared to the year before. Citing data from CyberSecurity Malaysia, a local news portal said there was a 1,192 per cent hike in data thefts in the country last year compared to only 50 cases in 2022.

It noted some 646 data thefts were reported last year, according to reports received by CMS’s Cyber999 helpline.

Elsewhere, within the banking sector, the rapid adoption of digital banking services has created “new opportunities” for cybercriminals to exploit vulnerabilities in online platforms. The lack of digital literacy among some customers, and the complicated cross-border nature of many scams are also contributing factors to people falling victim.

Notably, all these scams could only be the tip of the iceberg.

Advancing technology – a double edged sword

It is with these growing concerns in mind that GXBank, together with Zurich Malaysia, has come up with a product, aptly named the Cyber Fraud Protect.

This product is an insurance plan that aims to protect customers against unauthorised transactions due to cybercrimes that eventually lead to missing funds in all bank accounts, debit/credit cards and e-wallets, or unknown online purchases charged to one’s cards.

In essence, Cyber Fraud Protect will cover a financial loss provided it is due to a cyber event, meaning unauthorised access to one’s computer system has occurred.

Claims for the insurance will be processed fully digitally, with a target of completing claims within 48 hours upon receiving all necessary documents. Customers can conveniently find their insurance policy document and file a claim within their GXBank App.

Industry observers reckon that demand for such insurance products will only increase in line with the growing perils of the cyber world.

Among its industry peers, GXBank’s Cyber Fraud Protect has the widest coverage as it covers all bank accounts, debit/credit cards and e-wallets which come under the purview of Bank Negara. It also has the highest coverage in the market with up to RM20,000 financial losses covered.

The premium for Cyber Fraud Protect starts from as low as RM1 per month with one needing to have an active GXBank account before applying for this product.

Opening a GX Account is simple, as it can be done fully online within minutes, without requiring the customer to visit a physical bank branch. The account affords its customers an easy and safe way of managing their funds on their phones, anytime, anywhere. To date, more than 750,000 Malaysians have already signed up for a GX account.

Cyber Fraud Protect is available within the GXBank mobile app. Existing GX account holders can easily sign up for their desired insurance plan within the app, and monthly premiums are automatically deducted from the customer’s GX Account.

There are three different plans for Cyber Fraud Protect namely, Basic, Plus and Pro. Under the Pro plan,a monthly premium of RM4 is chargeable for a monthly limit of RM10,000 and an annual limit of RM20,000.

Given the increasingly advanced-but-still-evolving state of technology here and globally, it will not be wrong to presume that scams and frauds in the cyber world will only increase by leaps and bounds in the years to come.

Already AI has enabled criminals to use sophisticated deepfake technology to create multiple ways to scam sometimes even the most tech and financially savvy individuals.

The risk of falling prey is easily doubled for those who transact online frequently and especially those who find themselves on the Internet for long periods of time.

As one would imagine, the implications of being scammed are many fold. For some, the impact goes further than financial, often impacting their mental and sometimes, even physical health.

With insurance coverage protecting against potential losses from online scams, such issues can be avoided or at the very least, be minimised.

Meanwhile, a one month complimentary Basic plan will be extended to those who sign up for the Cyber Fraud Protect plan for the first time. This is a limited promotion which ends on 13 November 2024.

To learn more about the Cyber Fraud Protect or to sign up, visit this link.

*The Cyber Fraud Protect Insurance is underwritten by Zurich General Insurance Malaysia Berhad. GXBank and Zurich are members of PIDM, and are regulated by Bank Negara Malaysia. It covers financial losses from unauthorised transactions caused by a cyber event that leads to missing funds in bank accounts or digital wallets or online purchases charged to credit/debit cards. View the policy wording for more information on what’s covered.