46 % of Malaysians insecure about online banking security — study

KUALA LUMPUR: Almost 46 per cent of Malaysian consumers felt insecure about security measures related to e-wallets and payment applications, according to the VMware Banking Consumer 2020 Study.

VMware.Inc Vice President and Managing Director for Southeast Asia and Korea, Sanjay K. Deshmukh said the numbers were higher for connected devices, with 53 per cent doubting the security of smart devices with payment capabilities.

“The study also found that 70 per cent of Malaysian consumers prefer traditional payment methods indicating that they trust online interbank transfers, ATMs or cash.

“In contrast, consumers in Indonesia, the Philippines and Thailand are more open towards connected things and devices as new methods of payment,” it said in a statement yesterday.

It added that 82 per cent of Malaysian consumers surveyed kept their bank account details on at least one to six applications, and only 25 per cent practised good cybersecurity by using different passwords for all their accounts, which put them, banks and financial institutions at greater risk of financial fraud and losses.

“Malaysia’s cashless adoption rate is ramping up, with e-payment transactions per capita doubling to 111 transactions per capita in 2017 and forecast to reach 200 transactions per capita in 2020, according to Bank Negara,” he said.

Deshmukh said areas that could be enhanced in the digital payment method include transparency in policies and understandable terms and conditions; data privacy security and ethical use of personal data; as well as speed in answering queries or resolving issues.

“In this context, banks and financial institutions have a pressing need to boost their defences in the face of consumer distrust towards newer payment methods and lax consumer cybersecurity practices,” he said.