Kulasegaran: New digital security Act to hold banks accountable for online fraud

 NST By Hakim Mahari and Amalia Azmi - March 4, 2024 @ 4:28pm

KUALA LUMPUR: The government is drafting a new act to enhance digital security and combat online fraud, which will also hold financial institutions accountable if negligence is found.

Deputy Minister in the Prime Minister's Department (Law and Institutional Reform) M. Kulasegaran said that through the proposed bill, banks cannot evade responsibility if they are found to cause online fraud cases.

"I believe that banks must shoulder responsibility, and they cannot evade accountability. If any bank is found to be involved in such actions, it should be referred to the relevant authorities for further action.

"Nevertheless, the bill currently under review will address all the concerns raised by the Kota Melaka member of parliament. I encourage your participation in these stakeholder discussions," he told the Dewan Rakyat today.

His response came following a supplementary query by Khoo Poay Tiong (PH-Kota Melaka) regarding whether the proposed legislation would enforce stringent measures against those negligent in cases of online fraud, including financial institutions.

Highlighting the establishment of the National Scam Response Centre (NCRC) in 2021, Kulasegaran said that 93 numbers had been identified and 131 deactivated as of January this year due to suspected involvement in phone scams.

He attributed this accomplishment to collaborative efforts between the Malaysian Communications and Multimedia Commission (MCMC) and the telecommunications industry, which have been instrumental in identifying telephone numbers linked to fraudulent activities.

"The account and phone numbers associated with these activities will be logged in the police's 'SemakMule' system, serving as a reference and aiding the public in verifying transactions before proceeding.

"Meanwhile, statistics reveal that from 2020 to 2023, 107,716 online fraud cases were reported, resulting in losses amounting to RM3.2 billion."