Malaysia To Leverage AI To Detect Suspicious Financial Transactions -- BNM Governor

KUALA LUMPUR, Aug 20 (Bernama) -- The National Fraud Portal (NFP) launched today will leverage on artificial intelligence (AI) to detect suspicious transactions through predictive analysis.

Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour said one of the NFP’s main characteristics is its modular design which allows for continuous improvements to be made on the existing basic infrastructure.

He said that although data shows the overall losses borne by financial fraud victims are considered relatively small given the total domestic financial transactions, Malaysia cannot be complacent but must instead be more vigilant in identifying and overcoming the threats to safeguard the confidence in the national financial system.

Abdul Rasheed said cyber criminals will exploit technology continuously to expand their tactics.

“Our journey in fighting fraud is long and winding. In taking steps forward, I want to emphasise three main themes towards our efforts to combat financial fraud,” he said in his speech during the launch of the NFP here.

The themes are optimising technology, nurturing collaboration and empowering consumers.

According to him, Malaysia must optimise technology to enhance its capability and methods to crack down on financial fraud in view of the continuous proliferation of scam tactics.

“(In addition,) we have to nurture collaboration in our effort. Eradicating financial fraud requires the whole-of-nation approach as well as close public-private sector collaboration,” he said.

The governor said positive feedback has been received for the NFP which has seen the participation of 16 financial institutions, with more set to follow in the near future. 

“BNM and the financial industry welcome new participants and expansion of existing participation from all relevant stakeholders in the greater digital ecosystem to strengthen our concerted action,” he said. 

Abdul Rasheed said persistent efforts are required to empower consumers in order for all parties to be more cautious in a bid to prevent financial fraud.  

“The public is the first line of defence in preventing financial fraud. Similarly important are efforts by the financial industry in dealing with mule accounts and educating the public so that they do not become victims involving mule accounts,” he said.

To support the effort, he noted, the industry-level protocol on mule handling has been issued to boost the industry’s capability to identify mule accounts.

“In addition, improvements to the NFP are being planned to enable consumers to report suspicious transactions directly from their online or mobile banking accounts,” he added.

The NFP launch will enhance the capabilities of the National Scam Response Centre (NSRC), which was established in 2022, by automating the centre’s capability to trace stolen funds across multiple financial institutions and payment systems.

Rapid consumer complaints via the NSRC 997 line and financial institutions’ response can prevent stolen funds from being moved out of the financial system, hence increasing the potential of returns.

As of June 2024, more than 12,000 investigation papers have been opened, with RM72 million funds being frozen through enforcement orders issued by the police.

Meanwhile, BNM will also enforce the revised Policy on Fair Treatment of Financial Consumers effective October 2024 for ensuring the fair treatment of victims of unauthorised online electronic banking. 

Among the policy’s key principles are fostering greater transparency on obligations of financial institutions and consumers, particularly for cases where the investigation is unfavourable to the victims, and ensuring a robust and timely investigation process.

If the investigation takes longer than expected, the banking institution must take appropriate measures to mitigate the financial burden of the victims.

-- BERNAMA