Kuala Lumpur: Stampin MP Chong Chieng Jen has called on the government and local banks to strengthen anti-fraud measures by introducing thumbprint verification systems at ATMs to help curb the rising number of online scam cases nationwide.
Citing official data, Chong said Malaysians lost RM1.919 billion to online scams as of September 2025, up from RM1.58 billion recorded in 2024, reflecting a worrying upward trend despite the establishment of the National Scam Response Centre (NSRC).
“The NSRC’s efforts appear to be ineffective in addressing this growing problem,” Chong said during the debate on Budget 2026 in Parliament yesterday.
Chong, who is also DAP Sarawak Chairman and Padungan assemblyman, noted that most online scams involve transfers between bank accounts, meaning the stolen funds remain traceable within the banking system.
However, scammers ultimately need to withdraw the money in cash, often using ‘mule accounts’ through ATMs or bank counters, he explained.
To address this, Chong proposed that all banks be required to implement thumbprint authentication when customers withdraw cash from ATMs.
“Anyone frequently withdrawing cash from multiple accounts belonging to others can be easily identified as a potential fraud suspect,” he said.
Chong also raised concerns about the growing trend of banks closing customers’ accounts without providing any reason, often following transactions flagged as suspicious.
He said once a customer’s account is terminated, their name is added to a shared database among all financial institutions, effectively blacklisting them from opening accounts at other banks.
“This practice has become a form of financial death sentence for affected individuals,” he said.
“In today’s world, living without a bank account is nearly impossible – salaries cannot be paid, and everyday financial transactions become unmanageable.”
Chong claimed that customers are often not informed of the specific reasons for such closures, and when they appeal to Bank Negara Malaysia (BNM), they are told to deal directly with their banks, which in turn assert that they have the right to terminate accounts without explanation.
He called on BNM and the government to issue a directive requiring banks to provide a show-cause notice before closing any customer’s account.
“Banks should only proceed with closure if the customer fails to give a reasonable explanation or provides no response at all,” he stressed.
As an example, Chong highlighted the case of Mr. Chong Yu Haw, a car salesman whose bank account was closed in February 2025.
As a result, his salary and commissions have been unpaid for months, and appeals to both BNM and the Ministry of Finance have gone unanswered.
Chong urged the Finance Minister to intervene immediately to resolve the case and uphold fairness for affected citizens.
