SHAH ALAM - Banks must be just as efficient in helping consumers recover lost money as they are in correcting errors that affect their own interests.
Federation of Malaysian Consumers Associations (Fomca) chief executive officer Dr T Saravanan said banks should apply the same efficiency when assisting customers who lose money through financial scams or mistaken transfers.
“The association takes note of an incident involving a consumer who discovered that more than RM1 billion had appeared in their bank account due to a technical error.
“We appreciate the bank’s swift action in correcting the error and the consumer’s honesty in immediately reporting the matter, but the incident raises questions about the efficiency and fairness of the banking system towards consumers,” he said.
The incident went viral on Threads after a user with the account name Wmfwza was shocked to discover a balance of more than RM1 billion while checking their savings through a digital banking application.
The amount was corrected after the user alerted the bank, ending the brief period in which the account appeared to hold an extraordinary sum.
Saravanan said banks could resolve technical errors quickly, but consumers who accidentally transferred money to the wrong account or fell victim to scams often faced a different experience.
He said recovering the funds could take a long time, involve multiple procedures and sometimes end without a resolution.
“Fomca understands that technical errors, mistaken transfers and fraudulent transactions involve different procedures. In scam cases, funds may have been moved through several accounts, making recovery more difficult.
“However, this should not be an excuse for consumers to face bureaucratic hurdles, delayed action or difficulties obtaining updates on their complaints.
“If banks have advanced technology and sophisticated monitoring systems to detect and correct errors quickly, why can’t they use the same capabilities more effectively to help consumers recover their money?” he asked.
Fomca has urged Bank Negara Malaysia and banking institutions to improve complaint-handling mechanisms, expedite efforts to freeze funds suspected of being linked to scams and simplify the recovery process.
Saravanan said every complaint should have a clear response timeline, a designated officer responsible for the case and regular progress updates, adding that consumers should not be left waiting without certainty.
“Furthermore, if losses result from weaknesses in security systems or negligence on the part of the bank, responsibility should not be placed entirely on consumers.
“Fomca also proposes strengthening recovery mechanisms for money lost through scams and mistaken transfers by improving cooperation between banks, speeding up investigations and providing accessible dispute resolution channels.
“Fomca’s principle is clear. If banks can act swiftly to correct errors that affect their own interests, they must demonstrate the same commitment and efficiency when consumers lose their money,” he added.