This article first appeared in The Edge Malaysia Weekly on September 28, 2026 - October 4, 2026

Court documents last week shed light on how Bank Pertanian Malaysia (Agrobank) suffered a loss of RM203.8 million from nearly 3,000 unauthorised transactions carried out between Oct 28 and Nov 3 last year.

The bank found, among other things, that unauthorised messages and/or instructions had been sent through its Application Control Interface connector to PayNet, instructing funds to be credited to beneficiary accounts at various banking institutions.

These revelations should serve as a timely reminder to Malaysia’s banks. As financial services become increasingly digital, there is little room to be penny wise when it comes to cybersecurity, fraud prevention and keeping the financial system secure.

Artificial intelligence is giving criminals new tools to make scams more convincing, automate attacks and operate at greater scale. Meanwhile, banks continue to add digital services and channels in their push for greater convenience and efficiency.

This raises the question: Are banks spending enough to stay ahead? A serious incident can undermine customer confidence, disrupt operations and damage a bank’s reputation. As the regulator, Bank Negara Malaysia too needs to keep a closer watch on whether banks’ systems, controls and investments are keeping pace with the evolving risks.

Ultimately, digitalisation should make banking safer and more convenient for customers, not leave them more vulnerable.

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