Malaysia is stepping up consumer protection in the digital finance space, with eligible e-wallet issuers now required to fully compensate scam victims within seven working days if they fail to meet fraud prevention standards set by Bank Negara Malaysia (BNM), even in cases involving partial user negligence.
Prime Minister Datuk Seri Anwar Ibrahim said the measure is part of ongoing efforts to reinforce trust in the country’s rapidly expanding digital economy, particularly as the use of online banking and e-wallet services continues to grow among Malaysians. He stressed that stronger safeguards are essential to protect users from increasingly sophisticated financial scams.
The requirement means that any licensed e-money issuer that does not implement mandated preventive controls must reimburse victims promptly once a complaint is lodged. The policy shift reflects a broader push to ensure accountability among service providers while maintaining confidence in cashless payment systems.
Beyond compensation rules, BNM has also introduced stricter fraud prevention measures for banks and e-wallet operators, including enhanced transaction authentication, cooling-off periods for high-risk transfers, restrictions on device registration, and dedicated fraud hotlines. A “kill switch” function has also been introduced, allowing users to instantly freeze accounts suspected of being compromised.
Authorities have also strengthened coordination through the National Scam Response Centre (NSRC), which works across agencies to respond quickly to online fraud cases. The system has been further enhanced with the National Fraud Portal, designed to speed up tracing and freezing of stolen funds linked to suspicious transactions.
Anwar added that consumer protection frameworks were further improved in 2024 under the updated policy on Ensuring Fair Treatment for Victims of Unauthorised e-Banking Transactions (SEFT), which continues to guide how financial institutions handle scam-related disputes and victim compensation.
