Scammers Exploiting Credit Cards To Siphon Funds, Says MP

KUCHING: Scammers are now exploiting a new tactic to siphon funds from victims’ credit cards into e-wallet accounts like BigPay, Touch ‘n Go, Shopee Pay, Boost and others.

This was revealed by Democratic Action Party (DAP) Sarawak chairman and Stampin MP Chong Chien Jen in a press conference here today (Aug 11).

He said seven such cases were reported last month, with losses ranging up to RM20,000.

“The cardholder receives a message stating their credit card has been used, and if they haven’t made the purchase, they are prompted to call a number or click a hyperlink in the message.

“So, the unsuspecting cardholder will intuitively call the number or click on the link. This is how scammers lure their victims,” he said.

Chong added that scammers are increasingly targeting credit cards, transferring money into their e-wallet accounts rather than bank accounts.

“While most banks have introduced a 12-hour cooling-off period for abnormal bank-to-bank transfer transactions to prevent fraud, credit cards currently lack such safeguards. This creates a loophole that scammers are exploiting,” he claimed.

“Bank Negara should quickly address this issue, and the government needs to implement regulations for e-wallet platforms.”

He also alleged that banks are not doing enough to protect consumers, citing cases where victims immediately informed their bank of fraudulent transactions, yet the transfers were allowed to go through.

“We suspect that banks have a policy of refusing to freeze transactions once a credit card is charged, which is unacceptable,” he said.

I have mentioned that they would push for a law mandating compensation for victims, advocating for an amendment to the Financial Services Act that would introduce a no-fault compensation scheme, ensuring that victims recover a portion of their stolen funds.

“Without such measures, scammers will continue exploiting these loopholes to siphon money easily,” he said.