banks-must-fully-bear-customers-losses
https://www.msn.com/en-my/news/national/scam-banks-must-fully-bear-customers-losses-lim-says/ar-AA1ActIw
KUALA LUMPUR - Banks are responsible for losses caused by scams if the fraud occurs due to weaknesses on their part.
Deputy Finance Minister Lim Hui Ying said that Bank Negara Malaysia (BNM) required financial institutions to conduct thorough and transparent investigations into all financial fraud cases.
She said that BNM upholds the principle of shared responsibility in cases where both the bank and the customer have contributed to the security lapse.
"With this policy, the burden of losses in such cases should not be borne entirely by the victim. Victims are entitled to appropriate compensation.
"Any investigation that does not favour the customer is subject to an independent review to ensure an objective assessment," she said during the Dewan Rakyat session on Tuesday.
Lim was responding to a query from Pekan Member of Parliament (MP) Datuk Seri Mohmed Puzi Sh Ali, who sought clarification on the government's efforts to protect public rights and interests concerning unauthorised fund withdrawals from bank accounts.
She also pointed out that some users exposed themselves to financial risks by voluntarily sharing their security details and downloading applications from unreliable sources.
"The 2021 Financial Capability and Inclusion Demand Survey found that 37 per cent of respondents willingly shared their banking passwords with close friends, 62 per cent ignored security features on banking websites they visited, while 89 per cent rarely changed their passwords.
"Therefore, this new policy also emphasises the responsibility of users as the first line of defence in tackling online banking fraud. Users must always remain vigilant in protecting their personal security details," she said.
She advised customers to enhance their security by avoiding downloads from untrusted sources and regularly updating their passwords.
If scam victims are unhappy with the bank’s decision or the compensation offered, she emphasised that they have the right to challenge it through the Financial Ombudsman Service (FMOS), an alternative dispute resolution platform.
With this policy, the government aims to ensure that financial institutions uphold their responsibilities while encouraging consumers to play an active role in safeguarding their financial security.
