HSBC

Kuala Lumpur, 30 November 2017 – In response to a recent article published in Nanyang Siang Pau titled “Enactment of laws to protect bank accounts”, The Association of Banks in Malaysia would like to assure bank customers that our member banks have continually heightened and intensified precautionary measures to ensure bank customers’ data are safeguarded against banking fraud and unauthorised transactions. Robust security mechanisms are in place to detect the same.

Banks have also introduced additional measures for identity verification in respect of banking transactions, namely new application for bank loans, opening of new banking accounts and new online application and interbank transfers. For the enhanced identity validation, banks would require customers to provide additional documentation such as utility bills and other proof of ownership/identity, as well as biometric authentication.

Banks have been regularly educating and advising customers via SMS, email notifications and online banking portals to be on alert for scams and other forms of fraud. As reported in the media, the cases of fraud typically involved bank customers themselves who transferred monies out of their bank accounts to fraudsters after falling prey to these scams. These are not cases of the banks’ systems being breached/compromised.

Customers are therefore reminded to always remain highly vigilant in monitoring their banking accounts to detect any unauthorised transactions and also avoid falling prey to such scams. When in doubt, customers should refer only to the bank’s official channels such as its website, call centre and/or branches for clarification. In the event a fraudulent or unauthorised transaction is discovered, customers are advised to notify their banks immediately to enable the banks to initiate due investigation into the incident. Banks have ready investigation procedures in place to assist customers affected by unauthorised bank account transactions and identity misuse.

Members of the public may contact ABMConnect at 1300-88-9980 or via eABMConnect at www.abm.org.my for any enquiries or complaints relating to banking matters.

Kuala Lumpur, Tuesday, 12 December 2017 – In response to a recent article in The Edge titled ‘Oil and Gas Conundrum’ published on 10 December 2017, The Association of Banks in Malaysia would like to state that our member banks which comprise the 27 commercial banks in Malaysia, have remained supportive and will continue to provide access to financing for viable businesses including the oil & gas (O&G) sector.

All O&G cases have been given due consideration by the banks. Credit evaluation is conducted on O&G companies similar to loan applications by any other industries. Feasibility studies such as stress test analyses, due diligence and credit evaluation are conducted as part of the standard assessment procedure to determine eligibility and viability. Common reasons for loan rejection beyond ineligibility include incomplete loan documentation and inadequate supplementary information required to support banks’ assessment of cash flows and financial buffers of companies.

Delinquent loans ratio for the O & G sector stood at 0.1% while impaired loans ratio increased to 5% in the third quarter of 2017, due mainly to cash flow issues observed in service providers in certain upstream segments. Corresponding figures for the second quarter of 2017 were 0.2% and 4.5% respectively. However, risks to the banking system remained limited as exposures to the O&G sector accounted for about 6.5% of total exposures.

The banking industry together with Bank Negara Malaysia have been engaging with the Malaysian Petroleum Resources Corporation (MPRC) to better understand developments in the O&G sector and also to disseminate information on avenues for assistance available for financially distressed companies. Viable corporate borrowers with multiple financial creditors can approach the Corporate Debt Restructuring Committee (CDRC) for assistance to work out feasible and market-driven debt resolutions through mediation. More information on the eligibility criteria and application process to the CDRC can be found in this link: http://www.cdrc.my/

In addition, viable SMEs which are facing financial difficulties can seek assistance from the Small Debt Resolution Scheme (SDRS). Assistance offered include restructuring or rescheduling (R&R) of financing facilities and provision of financing (where appropriate) to stabilise business cashflow whilst SMEs implement business turnaround plan.

We refer to the abovementioned subject matter and would like to thank the writer Ng Shu Tsung for sharing his concerns. The Association of Banks in Malaysia (ABM) wishes to remind all cardholders to be vigilant when keying in their PIN during a transaction.

Since PIN-enabled cards were enforced on 1 July 2017, our member banks have remained committed to continuously educating and reminding the public on safe practices when using PIN-enabled cards. Some of the examples of safe practices that cardholders can adopt to avoid becoming victims of fraud include:-

1. Protect your PIN - do not disclose your PIN or record PIN on your payment card, or on anything kept in proximity with the payment card that could be lost or stolen with the payment card. Notify your card issuer if you have become aware that your PIN security has been compromised;
2. Report to your card issuer immediately if your payment card is lost or stolen or an unauthorised transaction has occurred;
3. Cover the keypad when entering your PIN (where a PIN pad shield is not available). A majority of the payment card terminals deployed by our member banks are equipped with PIN pad shield as part of the security measures undertaken to protect cardholders’ confidentiality; and,
4. Protect your card – do not leave your payment card unattended or allow another person to have access or to use your payment card.

More information on safe practices for cardholders on PIN security can be obtained at this link: PIN & Pay

In the event of a fraudulent transaction, cardholders are advised to inform the card issuers as soon as reasonably possible. Due investigation and processes are in place to determine the circumstances involved to conclude if the reported transaction is indeed unauthorised. The cardholder will not be held liable for losses arising from unauthorised transactions once investigative efforts have proven that the cardholder has not acted fraudulently or negligently and has practiced safety steps.

The banks have put in place fraud monitoring systems which monitor the cardholders’ transactions to mitigate the occurrence of fraudulent transactions. If an unusual activity is detected, cardholders will be notified immediately to facilitate the blocking of the payment card.

Regular checks are conducted at merchant outlets to rectify any inadequacies in PIN-enabled transactions.

On the concerns with regard to the lighted terminal keypads, we wish to advise that all card payment terminals are designed to illuminate automatically once a payment card is inserted into the terminal as soon as a transaction is activated.

On a separate matter, in response to the comments by the writer, Sivanesan Chelliah – ‘Put photo on credit card’ published on 9 November 2017, we would like to assure that robust security mechanisms are in place to safeguard against unauthorised and/or fraudulent transactions. Therefore, a credit card with a photograph of the cardholder will not be necessary.

For further enquiries, members of the public can contact us at our ABMConnect hotline by dialing 1-300-88-9980, or through eABMConnect by logging on to our website, www.abm.org.my.