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SC report: Fraud cases dominate cyber threats in Malaysia's financial sector

March 20,2025

By:Diyana Isamudin

KUALA LUMPUR: Fraud cases remained a dominant cyber threat in Malaysia's financial ecosystem in 2024, according to the Securities Commission (SC).

It noted that while technological advancements have enhanced efficiency and accessibility in capital markets, they have also introduced new challenges, particularly in cybersecurity.

"The continued cases of fraud highlight the need for heightened vigilance against suspicious groups and individuals to mitigate financial risks," the SC said in its Capital Market Stability Review 2024.

Beyond fraud, other commonly observed incidents include intrusion attempts and malicious code attacks, underscoring the persistent and evolving threat landscape.

According to the SC, global observations indicate that financial industries continue to rank among the most frequently targeted sectors for reported cyber incidents.

To address this, the SC said many institutions have adopted artificial intelligence (AI) for fraud detection and predictive analytics, enhancing efficiency in customer service.

It noted that technological innovation has significantly shaped capital markets, with financial technology solutions such as robo-advisors, blockchain-based platforms, and AI-powered trading systems enhancing accessibility and efficiency in financial services.

Blockchain technology, in particular, has introduced new levels of security, transparency, and efficiency in specific areas, especially cryptocurrency transactions, though its impact varies depending on implementation.

"However, these new technologies also bring challenges, particularly in managing cybersecurity and technology risks, with the ultimate goal of ensuring technological resilience," it said.