Growing need to fortify online transactions

Wahid calls for action to combat cyber crimes

“Although businesses are expected to update and upgrade security measures, this is simply not enough to prevent all financial fraud.” Tan Sri Syed Zainol Anwar Jamalullail

KUALA LUMPUR: Businesses should implement comprehensive fraud prevention measures, especially in the face of increasingly sophisticated financial crime, says Bursa Malaysia chairman Tan Sri Abdul Wahid Omar.

He emphasised that perpetrators of such crimes operate across borders, use globalisation and technology to their advantage, and break laws both within and across borders, Bernama reported.

“The increasingly transnational nature of financial crime means funds from such illegal activities can travel through more complex structures much further and faster, making it difficult to trace,” he said in his keynote address at Kenanga Investment Bank’s sixth Fraud Awareness Week yesterday.

Abdul Wahid added that increasing interest and demand for online transactions arising from the Covid-19 pandemic have further exacerbated the intensity of cybercrimes.

He explained that these now involve new technologies, which have led to the current and emerging threats that were unheard of a decade ago.

This year’s virtually-held awareness week is themed “Reaffirming Ethical and Moral Resilience for Good Governance” and is intended to reaffirm Investment Bank’s commitment and belief in the relevance of ethical and moral values in developing effective governance while shaping corporate culture within the current and evolving regulatory context.

Citing data from a report by the Royal Malaysia Police, Abdul Wahid said Malaysians lost Rm2.23bil due to cyber crimes between 2017 and July 2021.

Over 20,000 separate cases were recorded in 2021 alone, with losses totalling Rm560mil, and more than 11,000 cases of cyber crimes were reported in Malaysia from January to July 2022.

He also said that the likelihood of fraud may increase as globalisation develops, markets get more competitive, and technical advances and period accelerate.

Echoing these sentiments, Kenanga chairman Tan Sri Syed Zainol Anwar Jamalullail said as more people embrace digital transactions, more opportunities for fraudsters are created, increasing the risks of the digital fraud process.

“It is critical for businesses to ensure the safety and security of the digital platform in order to gain public confidence,” he said in his keynote address.

Syed Zainol emphasised the importance of businesses implementing prudent and safe platform management systems, as this will help build public trust, which in turn will promote wider acceptance by the public or digital platforms.

He also noted the importance of educating the public about new and emerging fraud dangers.

“Although businesses are expected to update and upgrade security measures, this is simply not enough to prevent all financial fraud.

“Reminders and increased awareness will not only reinforce the need for constant vigilance from all parties, but will also create an environment where everyone is risk-averse and responsible in protecting each others’ interests,” he said.