MALAYSIA is expecting digital banking to grow significantly in the next few years. With a digitally savvy population and banking penetration of 92%, there is huge potential for digital banking adoption.
Research shows that the country is well on its way to boosting digital banking participation and digital financial transactions as part of the government’s plans to transform the financial sector and improve financial inclusion in the country. 62% of Malaysian consumers are using fintech or e-wallet services, a significant jump from just 15% in 2017, and the number of consumers having a digital bank account is expected to double by 2026, reaching almost 40% of the country’s population.
While the convenience afforded by digital banking has seen its popularity grow significantly during the pandemic, but this has also made it a honeypot for fraud. Scammers are attracted to the increase in money flows, growth in some inexperienced users and finding new ways to con consumers online where money is transacted. In fact, fraud-related cases have cost Malaysians a total of RM1.61 billion, with over 51,000 reported online fraud cases during the pandemic.
Top fraud threats in Malaysia
According to the country’s Commercial Crime Investigation Department, the top fraud threats reported this year include impersonation scams, e-commerce crime, and phishing – which could lead to account takeovers and unauthorised transactions. As customers in Malaysia embrace new digital payment…
