KUALA LUMPUR (March 31): Bank Negara Malaysia (BNM) has outlined plans to strengthen its fraud resolution framework, aiming to better protect e-banking transaction customers and establish clearer accountability measures for banks.

In its 2025 annual report, the central bank noted that while progress has been made in streamlining dispute resolution and improving transparency, the next phase will focus on expanding the scope of compensation mechanisms.

“BNM will also explore stronger protection for vulnerable consumers. This includes assessing whether expanding SEFT’s (Self-Compensation Framework for Fraud Transactions) scope would help address the risks faced by this group, while accounting for the level of digital financial literacy and fraud landscape in Malaysia.

“At the same time, BNM recognises that potential behavioural changes from this expansion could unintentionally compromise customer vigilance. This initiative forms part of multi-pronged efforts to combat fraud and preserve trust in our financial system,” it added.

SEFT was introduced by BNM in 2024 through the Policy Document on Ensuring Fair Treatment for Victims of Unauthorised e-Banking Transactions, and came into effect in October 2024. 

It was part of its broader consumer protection agenda to address rising fraud risks in digital financial services and provide a structured framework for compensation in cases of unauthorised transactions.

The framework's key features include accountability assignment, balanced case reviews and consistency in resolution.

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