Banks target 2027 pilot for pre-transaction fraud alerts
The planned warnings would ask customers to check potential fraud risks before proceeding, with a wider rollout to follow the pilot.
Selected Malaysian banks are expected to test fraud warnings in the first half of 2027 under plans to flag risks before transactions go through, Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour said.
In remarks prepared for a financial crime and counter terrorism financing conference, Abdul Rasheed said banks were working on the alert capabilities. The targeted pilot would precede broader implementation, with customers prompted to reconsider and verify transactions before proceeding.
Bank Negara Malaysia’s data put the value of attempted fraudulent transactions stopped by the financial sector at some RM1.9 billion, compared with RM1.2 billion for the whole of 2025.
PayNet, which serves as Malaysia’s digital payment backbone, has flagged more than 1,600 accounts as suspicious. Subsequent assessments found mule-related risks in many of those accounts.
Abdul Rasheed acknowledged that the alerts could add friction to customers’ transactions. He said balancing convenience with safeguards against fraud required such measures, particularly for authorised scams.
