00:00Thank you, Mr. Speaker and Honourable Members of the House of Commons.
00:06At this time, the existing regulations and laws have taken into account the need to protect
00:13the public from financial fraud.
00:16However, I understand the public's concerns.
00:19I would like to make it clear that according to the existing regulations, banks cannot
00:25be held liable for any loss resulting from a bank fraud.
00:32Unless the bank has solid evidence to show that the client did not take the appropriate
00:39steps to protect the personal safety of the individual at all times.
00:45In general, every fraud case will be investigated and given a case caused by a system failure
00:52or a bank's own risk management practices, the bank will be held liable for the loss.
01:00However, if solid evidence shows that the safety of the individual has been compromised
01:07due to the failure of the bank's owner, the bank must consider offering a fair compensation
01:14to the victim based on the details of the case.
01:19If the bank does not agree with the decision or offer of compensation, the account holder
01:28has the right to make a statement regarding the decision to the Ombudsman for Financial
01:38Services.
01:41To strengthen the protection of the rights of the user, the Bank of Malaysia has also
01:47increased the basis for controlling electronic banking transactions without these new rights.
01:55This includes ensuring financial institutions carry out more comprehensive and transparent
02:02investigation in a timely manner, as well as implementing more effective prevention controls.
02:08With this improvement, a fraud must first take into account the impact of the safety
02:16imposed by financial institutions in handling financial fraud.
02:21This basis also clarifies the responsibility of users and banks to handle financial fraud
02:28in a timely manner.
02:30In an effort to finalize this basis, the Bank of Malaysia has carried out an investigation
02:37with the relevant parties.
02:39Other than that, since June 2023, all major banks have also implemented the following
02:45steps.
02:46First, ensuring that every bank transaction complies with safety standards, such as checking
02:53customer transactions and notifying customers of transactions.
02:57Second, enforcing fraud checking regulations to make sure transactions are suspicious.
03:05Third, restricting customers to only one stop for checking bank transactions in a chain
03:12to prevent the use of accounts by third parties.
03:16And speeding up the transfer of one-time OTPs through SMS messaging systems to more
03:26secure checks for transactions in a chain related to opening accounts, transferring funds,
03:33payment, and personal information exchange and setting up accounts.
03:39Providing a special hotline chain for victims to report fraud cases in the chain.
03:44In addition, the Bank of Malaysia has strengthened the Kill Switch mechanism, which allows users
03:52to freeze their own accounts if there is suspicious activity, including if they find that their
04:01accounts may be accessed or used without permission.
06:31Thank you.
07:02The number of cases received in 2020-2023 is 18,238 cases.
07:14Of these 11 cases, around 2,000 cases have been brought to the OFS.
07:23Of the 2,000 cases, 75% have been resolved.
07:36I would also like to emphasize here that the burden of carrying out unscrupulous investigation
07:45to prove the wrongdoing of bank transactions without justice is placed on the part of the
07:52bank and not on the victims.
07:54Victims do not need to prove that the transaction is not true, but it is the bank to prove it.
08:03Any compensation provided by the bank will take into account the unscrupulous investigation
08:08carried out for each case and the impact of the security control carried out by the bank
08:14in handling financial fraud.
08:19If the loss of financial fraud is a result of the bank's negligence or weakness, then
08:26the bank must be fully responsible for the loss.
08:32If the victim does not agree with the bank's decision or offer of compensation,
08:38the owner of the account has the right to issue a decision-related statement to the OFS.
08:44So, I know that YB Stampin needs a number of data.
08:51At this time, I do not have it.
08:53I will answer in writing.
08:55Thank you.
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