KUALA LUMPUR: A court decision ordering a banking institution to pay compensation to a customer after money was lost from the customer’s bank account has drawn widespread attention and sparked various reactions among the public and the country’s banking industry.
In the case, the customer was reportedly said to have suffered a loss of RM166,000 after money in the account disappeared due to disputed transactions. After a lengthy trial process, the court finally decided that the bank must pay compensation to the customer concerned.
However, the decision is said to have caused dissatisfaction among some in the banking industry and certain bank employees, who believe that modern banking security systems are among the strictest in the world.
Following this, the media sought the views of a cybersecurity and ethical hacking expert, Mr. Hisyam, who holds qualifications in Cyber Security & Ethical Hacking and is involved in digital security research.
According to him, the court’s decision is considered reasonable based on the responsibility of financial institutions to protect customers’ funds.
“Technically, modern banking systems have a very high level of security. Banks use multiple layers of protection such as encryption, firewalls, AI fraud detection, 24-hour transaction monitoring, and layered authentication systems such as passwords, TAC, and biometric verification,” he said.
He explained that most banking systems also have automated mechanisms to detect suspicious activity, including repeated failed login attempts, unusual transactions, and money transfers that do not match the customer’s usage patterns.
“When money is lost, digital forensic investigations are usually able to trace the transaction path, the recipient account, and the time access was made. That is why banking security issues must be viewed comprehensively and must not be taken lightly,” he said.
He added that user awareness of cyber threats is also very important, as most financial crimes today involve fraud tactics such as phishing, scam calls, fake applications, and psychological manipulation to gain access to victims’ accounts.
He said financial institutions must continue strengthening their existing security systems, while users must also be more careful in protecting their banking information.
The case continues to attract public attention and is seen as having a major impact on the level of responsibility financial institutions have in protecting customer security in the future.
Utusan Malaysia
Layers of Modern Banking Security
- Encryption & Firewall
- AI Fraud Detection
- 24-Hour Transaction Monitoring
- Layered Authentication
- Password
- TAC
- Biometrics
- Suspicious Activity Detection System
“Banking security issues must be viewed comprehensively and must not be taken lightly.”
— Mr. Hisyam