Malaysia recorded financial fraud losses amounting to RM2.8 billion in 2025, highlighting the growing scale of online scams affecting victims across the country.
However, authorities have revealed a striking finding: about 95 per cent of online scam cases involve authorised transactions, according to the latest Bank Negara Malaysia (BNM) Annual Report 2025.
The report explained that these cases fall under situations where victims themselves initiate and approve the money transfers, often after being manipulated or deceived by scam syndicates.
Such scams commonly involve psychological tactics, including love scams and investment frauds, where criminals exploit emotions such as fear, greed or affection to influence victims into making payments willingly.
BNM noted that because the transactions are authorised by the account holders, they do not fall under the protection of the Policy Document on Ensuring Fair Treatment for Victims of Unauthorised e-Banking Transactions (SEFT), which only covers unauthorised transfers involving system breaches.
The central bank said SEFT, which came into effect in October 2024, is designed to compensate victims only in cases where transactions are carried out without their knowledge or consent.
The findings underscore that the most effective defence against the majority of scams is not solely banking security systems, but rather consumer awareness and financial literacy.
Members of the public are urged to adopt safer online practices, including protecting personal banking details, avoiding suspicious links, and pausing to verify offers that appear unusually attractive.
In cases of suspected fraud, victims are advised to immediately contact their bank’s fraud hotline or the National Scam Response Centre (NSRC) at 997. Throughout 2025, the NSRC reportedly managed to block more than 162,000 mule accounts believed to be linked to criminal activities.
Looking ahead, BNM is reviewing the possibility of expanding SEFT’s scope to provide broader protection for vulnerable users, while balancing concerns that overprotection may unintentionally reduce public vigilance against scams.
