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Bank Negara Malaysia announced additional security measures for financial institutions to strengthen their systems and migrate from SMS one-time passwords (OTPs) to more secure authentication forms against financial crimes, especially online ones.
MBSB Bank has been instructed to follow the latest security protocols announced by BNM, Bank Negara Malaysia, to fight financial crimes, especially those that target online transactions.
According to the chief executive officer of MBSB Bank, Datuk Nor Azam M. Taib, despite having security concerns, financial institutions must act upon the instructed measures to curb scams and protect customers.
On Sep 27, 23 participants received certificates of completing GRAP, Entrepreneurship Assistance Program by Nor Azam. He said, “There are no two ways about it. We will follow what is required by BNM.”
On Monday, BNM instructed financial institutions to change their SMS one-time passwords (OTPs) verification method and adopt more robust authentication ways to provide a secure online activity system. Furthermore, strict fraud detection rules and triggers are needed to block suspected scam transactions.
Restricting customers to one secure device for the process of verification will help in security assurance. The financial industry will receive security advisories highlighting the latest scamming techniques.
Nor Azam is positive about MBSB’s outlook for this year. According to the chief executive officer, “Our third quarter is doing much better than the first half of the year, and we think the fourth quarter will too. However, for next year, we are not sure how long growth will be sustained because as a small economy, we (Malaysia) will depend on our surrounding environment, which may not be that stable.”
On the Entrepreneurship Assistance Program initiative, Nor Azam said that the financial institution is planning high-level training for participants. Including different aspects, such as product marketing on e-commerce platforms, the training will help businesses expand their capabilities and grow exponentially.
With 80% of single mothers, most of the participants who received GRAP certificates were PPR Desa Rejang in Setapak, Kuala Lumpur’s residents.
From February to August 2022, a seven-month training program was arranged for participants. This program covered subjects like emotional well-being, creative mind, sales and marketing, accounting methods, etc.
Islamic Relief Malaysia collaborated with the GRAP program. Nor Azam said that participants managed to increase by more than 95% in monthly income.
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