By DayakDaily
KUCHING, Oct 28: Stampin MP Chong Chieng Jen has proposed that all banks in Malaysia be required to implement a thumbprint verification system for ATM card cash withdrawals, as part of efforts to combat online scams that have caused losses amounting to RM1.919 billion as of September 2025.
Speaking during the Budget 2026 debate in Parliament today, Chong said the measure could help authorities track and identify individuals involved in withdrawing cash from multiple accounts linked to scam syndicates.
“Although scammers use various mule accounts, they ultimately need to withdraw cash from these accounts to make the money untraceable. Such withdrawals are mostly done through ATMs using cards belonging to mule account holders,” he said in his speech text.
He argued that since all scam-related transactions involve transfers within the banking system, the stolen funds remain traceable.
Introducing biometric verification, he said, would add a crucial security layer to detect repeat offenders who frequently withdraw money from different accounts.
Chong also questioned the effectiveness of the government’s National Scam Response Centre (NSRC), noting that despite its establishment, scam-related financial losses continue to rise, from RM1.58 billion in 2024 to RM1.919 billion this year.
“The figures show a worrying upward trend, which suggests that the NSRC’s efforts have not been very effective in curbing the problem,” he added.
The Democratic Action Party (DAP) lawmaker further raised concerns over another banking issue, the closure of customer accounts without explanation.
He criticised local banks for arbitrarily instructing account holders to close their accounts after detecting “suspicious” transactions, often without providing reasons or recourse.
Chong described this practice as a form of “financial death sentence”, as affected individuals are often blacklisted across all financial institutions, leaving them unable to open new accounts or receive salaries through bank transfers.
He cited the case of a car salesman, Chong Yu Haw, who has been unable to receive his salary and sales commissions since February 2025 due to such an account closure.
“I urge the Ministry of Finance and Bank Negara Malaysia to issue a directive requiring banks to first issue a show-cause letter to customers before closing any account. Only if the customer’s explanation is unsatisfactory or absent should the bank proceed with closure,” he said.
Chong called on the Finance Minister to intervene promptly in the case of Chong Yu Haw and to review existing banking procedures to ensure ordinary Malaysians are not unfairly penalised. — DayakDaily
