E-wallet providers that fail to meet Bank Negara Malaysia’s fraud safeguards will have to fully reimburse scam victims within seven working days.
The Star reported that Prime Minister Datuk Seri Anwar Ibrahim disclosed the requirement in a written parliamentary reply to Roy Angau Gingkoi (GPS-Lubok Antu), who asked about stronger protection for victims of e-wallet and online payment scams.
The rule also applies when user negligence partly contributed to the loss.
BNM is tightening consumer protection across digital payments as online banking and e-wallet use grows.
Banks and eligible e-money issuers must follow several anti-fraud requirements.
These include stronger transaction authentication, cooling-off periods for high-risk transactions, single-device account verification, fraud hotlines and kill switch functions.
The National Scam Response Centre and National Fraud Portal are also being used to speed up scam response, trace stolen funds and freeze suspicious transactions.
BNM’s framework covers cases where banks and customers share responsibility, with compensation assessed based on each party’s level of negligence.
Customers who disagree with a bank’s decision can seek an independent review through the Financial Market Ombudsman Service.
Anwar said enhanced security controls helped financial institutions prevent RM1.2 billion in fraudulent transactions last year.
The number of victims receiving full or partial compensation also rose by 26% after the policy was fully implemented.
Featured image: Edited by Fintech News Malaysia, based on image by ahfarhan001 via Magnific
