KUCHING: Reinstating the Interbank GIRO (IBG) system with a 24-hour transfer delay has been suggested as a safeguard against the rising wave of online scams.
Sarawak United People’s Party (SUPP) Public Complaints Bureau chairman Milton Foo said the current practice of instant transfers has made it far too easy for scammers to drain victims’ accounts within minutes, leaving no time for detection or recovery.
“With a cooling-off period, banks and customers would have a window to verify suspicious transactions before money leaves the account.
“Some banks have already introduced a 12-hour delay, which is a good step, but I believe a 24-hour buffer, like under the old IBG system, would better protect the public,” he told a press conference at his office on Tuesday.
Foo pointed out that scam cases in Malaysia have cost victims RM3.1 billion in just 19 months, sparking growing anxiety among the public over the safety of keeping their money in banks.
“People have told me they are considering withdrawing their savings because they no longer feel safe.
“Even I, as a lawyer, wake up every morning checking if my firm’s client accounts are intact. This situation is causing mental stress to many ordinary people,” he said.
He also suggested that Bank Negara Malaysia and the Ministry of Finance consider making it mandatory for instant transfers to be carried out only upon special request from customers with additional verification.
“If it is truly urgent, let the customer contact the bank, send a letter or make an official request. Otherwise, use the safer IBG system.
“This step is important for public interest as scammers are becoming increasingly sophisticated with new tactics. Even if it causes some inconvenience, it is far better than losing millions of ringgit,” he added.
At the same time, Foo reminded the public that they do not need to face such problems alone.
He said the SUPP Public Complaints Bureau stands ready to help victims verify suspicious documents or correspondence free of charge.
“If you receive a dubious letter or demand, come to us. We will assist you without cost.
“The important thing is not to panic and not to transfer money before verifying,” he said.
Foo stressed that while scams cannot be fully eradicated, tighter banking safeguards, combined with greater public awareness, are key to minimising losses.
