32% of Malaysians are most concerned about
being tricked into making payment to a criminal
(NYSE: FICO)
Highlights
- Payment Fraud is top financial crime concern for 32% of
Malaysians
- Identity theft worries persist, with 37% believing they have or
might have been victims
- Real-time payment scams are on the rise, with 76% receiving
scam communications
- Fraud protection is paramount, with ease of use and good fraud
protection ranking as top considerations for selecting financial
services providers
FICO, a leading global analytics software firm, today unveiled
its latest global consumer fraud research, shedding light on
Malaysians' ongoing apprehension regarding real-time payment scams
amid the growing adoption of new, convenient, and fast payment
channels. According to the study, the primary worry for Malaysians
remains the risk of being tricked into sending money to criminals
(32%), which exposes individuals to instant, irrevocable losses
rarely eligible for reimbursement.
Additionally, concerns about identity theft persist, with over
25% of Malaysians citing it as their top financial crime concern.
This type of fraud carries additional risks beyond financial loss,
such as compromised credit scores and the challenging process of
restoring financial integrity.
More information:
https://www.fico.com/en/latest-thinking/ebook/consumer-survey-2023-digital-banking-customer-preferences-and-fraud-controls
“Malaysia’s adoption of real-time payments continues to
accelerate, with 92% of adults having sent a real-time payment and
55% expecting to increase their use over the next year,” said C
K Leo, FICO's lead for fraud, security and financial crime in Asia
Pacific. “As the adoption of real-time payments surges, driven
by platforms like Boost, Touch & Go (TnG), and GrabPay, we're
witnessing a transformative shift in financial behaviour. Yet,
amidst this rapid digitisation comes an urgent need for heightened
vigilance against fraudsters lurking in the digital realm.”
Real-Time Payment Scams: A Growing Concern
As the incidence of scams continues to rise, FICO’s research
from last year uncovered a troubling trend related to authorised
push payment (APP) fraud and real-time payments in Malaysia. A
concerning 76% of Malaysians have received unsolicited text
messages, emails, phone calls, or other outreach that they believed
to be part of a scam, while 54% of respondents stated that their
friends or family members had been victims of a scam.
Shockingly, 19% of respondents admitted to sending real-time
payments for investments, goods, or services they never received.
Additionally, 41% of those who made scam payments through real-time
payments lost up to MYR 500, while 10% experienced losses of up to
MYR 7,500. Despite these alarming figures, only 28% reported actual
or suspected losses to their banks.
"Banks now face a crucial moment to invest in cutting-edge
solutions to tackle the surge in scams, particularly with the swift
uptake of real-time payments in the Asia-Pacific financial
landscape,” said Leo. “The irrevocable nature of these
transactions has led to new criminal threats. By integrating
scam-specific analysis and scoring into transactions, along with
robust decision-making capabilities across the customer journey,
banks can pre-emptively detect and thwart scam payments, sparing
customers from financial harm. Furthermore, while some consumers
may ignore warnings, the majority will heed alerts and refrain from
making real-time payments if alerted to potential scams."
Perception vs. Reality
Despite widespread concern about identity theft, there is a
noticeable dissonance between perception and reality among
Malaysians. About 32% believe it unlikely they've been a victim,
while 18% see it as possible, and 17% are confident their identity
remains untouched.
Moreover, only 7% of Malaysian respondents reported their stolen
identity being used to open a financial account, an increase from
nearly 6% in 2022. However, given Malaysia’s adult population, this
7% translates to over 1.6 million individuals. Interestingly, this
rate was much higher in other countries surveyed, with 13% of
Indians and 12% of Thais saying their identity had been stolen and
used to open an account by a fraudster.
“While some may downplay the risk of identity theft in Malaysia,
millions remain vulnerable,” added Leo. “This underscores
the need for heightened awareness and proactive measures. By
breaking down silos and integrating identity verification and fraud
detection processes, we can streamline applications and bolster
trust in legitimate customers.”
Malaysians Prioritise Good Fraud Protection
When asked about the most important considerations respondents
have when they select a new provider for a financial account, good
fraud protection and ease of use were the two most important. These
were both considered significantly more important than good
customer service, strong anti-money laundering policies, sound
green/environmental policies, ethical use of customer data,
behaving fairly, and good value for money.
The survey was conducted in November 2023 by an independent
research company adhering to research industry standards. 1,000
Malaysian adults were surveyed, along with approximately 12,000
other consumers in Canada, U.S., Brazil, Colombia, Mexico, India,
Indonesia, Philippines, Singapore, Thailand, U.K. and Spain.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240520815297/en/
Lizzy Li RICE for FICO +65 9034 7768 lizzy.li@ricecomms.com
Saxon Shirley FICO +65 9171 0965 saxonshirley@fico.com
Fair Isaac (NYSE:FICO)
Historical Stock Chart
From May 2024 to Jun 2024
Fair Isaac (NYSE:FICO)
Historical Stock Chart
From Jun 2023 to Jun 2024