Malaysia’s banking industry and PayNet plan pilot tests for industry-wide fraud alerts in 1H 2027 to help prevent suspicious transactions
KUALA LUMPUR: The banking industry and PayNet are working towards introducing industry-wide fraud alert capabilities, with pilot testing involving selected banks targeted for the first half (1H) of 2027.
Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour said the industry-wide fraud alert capabilities can warn banks and customers of a potential risk before the transaction is completed.
“These alerts will prompt customers to pause, think, and verify before proceeding,” he said during his opening remarks at the International Conference on Financial Crime & Counter Terrorism Financing (IFCTF) 2026 today.
Abdul Rasheed said this capability may introduce interference for customers, and there may also be complaints.
“However, these measures are necessary to strive for an appropriate balance between offering convenience and protecting customers from fraud, particularly those with high-risk status,” he said.
He said PayNet has flagged more than 1,600 suspicious accounts, many of which were subsequently assessed as presenting new related risks.
“This demonstrates the potential of network-level intelligence by collecting information required by institutions to identify risks that may appear invisible from the perspective of any one individual institution,” he said.
And to support this shift, he said BNM has strengthened the foundations of technology risk management and fraud prevention.
“The revised risk management methodology policy document strengthens financial institutions’ resilience against technology-related risks, cyber risks, and rapidly evolving digital crimes.
“Meanwhile, the recently issued financial institutions’ response to fraud policy document further reinforces the capability of fraud risk management while promoting responsible use of intelligence, analytics, and technologies,” he said
Looking ahead, he said the industry should also move from head-to-head information exchanges towards more structured transnational and technology-enabled partnerships.
“Underpinned by trust, sound governance structure and secure information sharing mechanisms, the potential of both public-private and private-private partnerships can be powerful and enormous to advance intelligence-led financial transformation,” he added.
