KUCHING, Oct 27: Banks and digital wallet companies should be more strict so that account holders who commit fraud can be traced and held accountable, according to Sarawak Democratic Action Party (DAP) chairman Chong Chieng Jen.
In a statement, Chong said all cases of Internet banking fraud involve a recipient bank account or e-wallet account holder; consequently, there should be stricter policies for anyone to open a bank account or e-wallet account.
He asserted that banks should be held accountable for losses caused by bank scams.
“All data leaks and system hacks could be avoided with more advanced security programmes at a higher cost.
“If banks were held liable for the losses caused by such bank scams, banks would have more incentives to invest in more advanced security systems,” he added.
Chong continued by recommending the implementation of a no-fault insurance policy to compensate the victims of such bank scams.
“Banks must implement such policies to protect their customers. If a bank has a high number of bank scam cases, the insurance premium will be higher than if the bank has a low number of bank scam cases.
“As a result, banks with a high number of bank scam cases will have higher funding costs and lower profits. This is also to encourage banks to improve their e-banking systems.
“I sympathise with the victims of such bank scams. Many of them have had their life savings stolen without their knowledge,” he highlighted.
Chong, who is also the Padungan assemblyman, stated that Sarawak DAP commends the Sarawak police force for its prompt response to mule account cases.
“While the Royal Malaysia Police (PDRM) is taking the matter seriously, the Sarawak government and Bank Negara Malaysia (BNM) should also be proactive in order to compensate victims of bank scams and “stealing” through Internet banking.
“The “bank-account-renting” scheme is only one component of the overall bank scam ecology,” he said.
He highlighted that other aspects of the bank scam ecology include personal banking information leaks, hacked e-banking security systems, compromised digital wallet companies’ security systems, and unclear victim compensation policies.
He remarked: “All of this can only be dealt with effectively if the Sarawak government and BNM work together to develop a clear policy on the subject.”
Chong posited that it is undeniable that both banks and depositors are victims of bank scams.
“As a result, the question is, who is in a better position to prevent such losses?
“Banks, in my opinion, should bear such losses because they have all the financial resources and means to prevent such incidents from occurring,” he commented.
He added: “A government that does not provide security for people’s bank savings is a total failure, and I hope that a new government elected after the 15th General Election (GE15) will ensure that people’s bank savings are safe.”
Chong made these comments after assisting victims of recent scam cases.
