Kuala Lumpur, Dec 30, 2024 – Malaysia’s police have urged financial institutions to adopt a 72-hour cooling-off period for online transactions to combat the rise of online scams. Bukit Aman Commercial Crime Investigation Department Director, Comm Datuk Seri Ramli Mohamed Yoosuf, emphasized that banks must take proactive measures to reduce scams that have plagued Malaysians in recent years.
Ramli suggested that a longer cooling-off period, possibly between 48 to 72 hours, would help prevent financial fraud. Although such a policy might initially impact legitimate business transactions, he believes that the public would adapt over time. This measure, he argued, could significantly reduce the number of scam cases and help protect consumers from severe financial losses.
He also called for more stringent enforcement of the “Know Your Customer” (KYC) regulations, especially in relation to companies opening bank accounts. Ramli highlighted the concerning trend where businesses, particularly those being used as money mules in investment scams, can easily open accounts and exploit banking systems.
To address this issue, Ramli urged financial institutions to work closely with the Companies Commission of Malaysia to conduct thorough vetting of companies applying for accounts.
The impact of online scams has been significant, with losses amounting to RM2.7 billion in 2024, up 44% from RM1.9 billion the previous year. A total of 30,724 scam cases were recorded between January 1 and December 15, showing a slight decrease in cases but a sharp increase in financial losses.
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