An elderly woman in her 50s fell victim to a sophisticated scam after discovering that a fraudulent RM40,000 cash loan had been taken out under her credit card account without her knowledge—and quickly siphoned off by scammers. Despite clear evidence of major security failings by the bank, the Financial Ombudsman only ruled for a 50% waiver on the losses, leaving the victim feeling betrayed and unfairly treated.
Sarawak DAP chairman and state assemblyman Chong Chieng Jen revealed the case in a press statement, noting that his special assistant, lawyer Sim Kiat Leng, had helped the victim file a complaint to the Financial Ombudsman. Investigations uncovered glaring lapses in the bank’s loan approval and fund transfer processes.
According to the findings, scammers managed to access the victim’s credit card account and applied for a personal loan in her name. The bank approved the loan without any phone verification and transferred the funds directly into the victim’s savings account. On the same day, the scammers transferred the money in batches to a third-party account within the same bank.
The victim stressed that she had never authorised any loan or transfer, and rarely uses online banking services. Chong slammed the bank for failing to implement safeguards for elderly customers, especially when handling large and suspicious transactions. He questioned why no additional verification or callback confirmation was done, considering the customer’s profile and the size of the transfers.
While the bank argued that the OTP (one-time password) had been sent and used, Chong dismissed it as an insufficient excuse—particularly for senior citizens who may not be familiar with digital banking. He emphasized the need for banks to introduce multi-layered security systems, especially for vulnerable groups.
Although the Financial Ombudsman acknowledged that the bank had failed in its security responsibilities, the decision to hold the victim liable for half of the loss has sparked criticism. Chong called the decision “unreasonable,” insisting that banks must not shift the burden of their system failures onto customers.
He pledged to assist the victim in appealing for a full waiver and urged all financial institutions to urgently review their anti-fraud systems, especially with regard to protecting the elderly and other high-risk individuals.
“Financial security should not come at the expense of customers—especially when the fault lies in the system itself,” Chong stated.
