KUCHING: Banks must do more to safeguard consumers against online scams, said Michael Kong, Special Assistant to YB Chong Chieng Jen.
Kong said this after assisting a victim, Ang, who recently lost RM116,700 to a telephone scam conducted through WhatsApp.
“According to Ang, she came across a Facebook post on October 5 advertising nutritious home-cooked meals. When she clicked on the post, she was redirected to WhatsApp and later received a call from the supposed seller,” said Kong.
He explained that while on the call, a new icon appeared on her phone, which she believed contained the food menu. “She opened it briefly but found it difficult to use and deleted it. Later that day, she received a call from a friend who told her that her WhatsApp account was being used to solicit money,” he said.
Realising something was wrong, Ang tried to recover her WhatsApp account and, out of caution, checked her bank account. “She was shocked to discover that RM116,700 had been withdrawn over two days, RM50,000 on October 5 and RM66,700 on October 6,” he said.
Kong said the case highlights serious weaknesses in the banks’ security systems. “In this case, the scammer made ten consecutive withdrawals of RM5,000 in one day, followed by more withdrawals the next day, yet none of these triggered a security alert or hold by the bank. This raises serious questions about the bank’s monitoring systems,” he stressed.
“Banks have a duty of care to protect their customers. With the technology and data analytics available today, banks should have systems that automatically detect unusual transaction patterns and immediately trigger alerts or temporary holds pending verification,” he said.
Kong added that the failure to do so not only exposes customers to financial loss but also undermines public confidence in the banking system.
“We will continue to assist Ang in seeking answers and accountability from the bank. At the same time, I urge members of the public to remain vigilant and avoid clicking on suspicious links or downloading unknown applications, especially from social media or messaging platforms,” he said.