Bank Negara Malaysia (BNM), Payments Network Malaysia Sdn. Bhd. (PayNet), and financial institutions have on Tuesday launched the National Fraud Portal (NFP) as an integrated platform to strengthen the operational capabilities of the National Scam Response Center (NSRC).
BNM said in a statement that NFP automates the end-to-end process of handling scam reports and tracing of stolen funds by the NSRC.
The integrated platform allows automated fund tracing and recovery, effective industry-wide information sharing and collaboration and data-driven mule assessments.
With the platform, financial institutions can swiftly track stolen funds across the entire financial system through automated tracing.
It prevents further transfers and increases the prospect of fund recovery.
The platform also allows financial institutions to share information and intelligence on fraud incidences.
NFP is also supported by credible data on mule accounts that will facilitate better identification, assessment and monitoring of mules.
Along with the NFP, the financial industry has also agreed to adopt industry-wide procedures for reporting and handling mule accounts.
These procedures enhance the quality of industry-wide mule account data through streamlined mule classification.
It also standardizes the industry’s approach towards treating mules to ensure account holders affected by mule account activities can continue to access basic financial services.
These measures complement BNM’s multi-pronged approach to combat financial scams.
This includes BNM’s recent directive to financial institutions to ensure victims of unauthorized online banking transactions are treated fairly.
Among others, BNM requires financial institutions to ensure robust fraud investigation processes with enhanced transparency and disclosure obligations.
The policy also underscores the need for joint accountability in cases where evidence points to lapses on the part of the financial institution and also negligence on the part of the victim.
This approach balances the need to ensure banks continuously enhance their fraud control measures while also reminding customers to remain vigilant in protecting themselves from scams.
“The collective effort, dedication, and cooperation across the financial sector and law enforcement agencies must continue, and build on the momentum achieved thus far,
“Ensuring a secure and safeguarded digital future is crucial in elevating our nation’s status and competitiveness as envisioned under the Ekonomi MADANI framework,” Malaysia’s Minister of Finance II Amir Hamzah Azizan said.
BNM Governor Abdul Rasheed Ghaffour said with the NFP, the NSRC operations is now equipped with an end-to-end automated process from managing fraud reports, validating and tracing stolen funds, to sharing alerts among financial institutions to trigger prompt action.
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