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Banks put lid on online scams

PETALING JAYA: Banks will introduce a new layer of security as they work closely with cyber security authorities and the police to combat the proliferation of online fraud.

Cybersecurity Malaysia said fraud cases reported to the agency had doubled from 606 in 2009 to 1,328 in 2010 and 3,142 last year.

“As of April this year, we received nearly 2,000 cases of online banking fraud,” said its CEO Lt Col (Ret) Prof Datuk Husin Jazri, who confirmed that the agency was joining forces with the Association of Banks Malaysia to combat Internet scams.

The agency, under the Science, Technology and Innovation Ministry, will work with banks to carry out an intensive campaign to raise awareness of the scams.

The matter has become so serious that CIMB and Maybank recently made a concerted effort to warn of online banking scams by taking a full page advertisement in The Star, urging their customers to report immediately if they received a TAC (Transaction Authorisation Code) which had not been requested.

The TAC, which is sent by SMS to the registered mobile phone of the user, is the second layer of security. The first is the login credentials the username and password.

According to Macro Kiosk Bhd., the mobile service provider for 16 local banks, financial institutions might adopt a “third layer” of security for their online systems soon.

The “Third Factor Authentication” feature will detect attempts to hack into online banking accounts based on the location of the user's mobile.

“It will allow banks to detect the location of the computer used to log into the account and match it with the location of the user's mobile phone.

“For example, if the person accessing the account is found to be outside Malaysia, while the user's mobile phone is in this country, it is likely that something is not right,” said Macro Kiosk CEO Kenny Goh.

The user would then be sent an SMS to confirm if they wanted to continue with the transaction.

“This will alert the user if someone is trying to hack into his or her online banking account.”

Source: The Star, 25 May 2012

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