Urgent need to implement comprehensive fraud prevention measures - Wahid Omar

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

He emphasised that perpetrators of such crimes operate across borders and exploit the means of globalisation and technology to their interest and at the same time, break laws within countries and across borders.

"The increasingly transnational nature of financial crime means funds from such illegal activities can travel through more complex structures much further and faster and makes it difficult to trace," he said in his keynote address at Kenanga Investment Bank's annual sixth Fraud Awareness Week (FAW) today.

He added that increasing interest and demand for online transactions arising from the COVID-19 pandemic has further exacerbated the intensity of cybercrimes involving new technologies which have led to the current and emerging threats that were unheard of a decade ago.

This year's virtually-held FAW is themed "Reaffirming Ethical and Moral Resilience for Good Governance", and it is intended to reaffirm Kenanga's commitment and belief in the relevance of ethical and moral values in developing effective governance while shaping corporate culture within the current evolving regulatory context.

Citing a report by the police, Abdul Wahid said Malaysians lost RM2.23 billion due to cybercrimes between 2017 and July 2021.

Over 20,000 separate cases had been recorded in 2021 alone, with losses totalling RM560 million, and more than 11,000 cases of cybercrimes were reported in Malaysia from January to July 2022.

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

Echoing the sentiment, 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 stressed that businesses should adopt prudent and safe management systems for their platforms, as this would help to build public trust, which would in turn 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-conscious and responsible in protecting the interests of each other," he said.

-- BERNAMA