KUALA LUMPUR, Aug 12 — So you may have immediately blocked your credit card and told your bank about the suspicious transactions on your credit card, but what happens next?
This is after you had discovered you are a victim of credit card fraud, where fraudsters illegally used your card to make payments without your approval.
Now, your bank investigates your case.
Here’s a step-by-step guide on what happens next, based on The Association of Banks in Malaysia’s (ABM) reply to Malay Mail:
Part II: What happens while your bank investigates the unauthorised transactions
1. You will get a replacement credit card with a new credit card number (it should be free)
“In most cases, if a credit card has been compromised due to unauthorised transactions and subsequently blocked or cancelled, the bank will automatically issue a replacement credit card.
“Generally, for a replacement credit card issued due to fraudulent or unauthorised transactions, banks in Malaysia typically do not charge a replacement fee. This is because the compromise was not due to the customer’s fault (e.g. losing the card or damaging it),” ABM said.
But ABM said it’s always a good practice for you to confirm this with the bank when you are reporting the fraud.
If you see a replacement fee in your credit card bill (for the replacement card issued due to unauthorised transactions), contact your bank’s customer service or credit card department to dispute the charge.
2. You might still see the fraudulent transactions in your credit card bill, while the bank is still investigating
What you should do: Pay the credit card bill on time as usual, but don’t pay the disputed transactions that are still being investigated.
Let’s say your total credit card bill is RM1,800 (including unauthorised transactions worth RM1,000), just pay the undisputed portion of RM800.
“Customers should continue to pay any legitimate, undisputed transactions on their credit card bill by the due date to avoid late payment charges on those amounts and to maintain a good credit standing.”
Why you don’t have to pay the disputed portion while investigation is ongoing
ABM said credit cardholders in Malaysia are given this crucial protection, based on regulator Bank Negara Malaysia’s (BNM) guidelines.
ABM cited BNM’s July 2, 2019 policy document on Credit Card, which states that a credit card issuer:
- Shall not require a cardholder to pay the disputed amount during the investigation period
- Shall not impose any finance charges/other charges on the disputed amount during the investigation period
“This regulation aims to protect consumers from financial burden while their fraud claims are being investigated,” ABM said.
ABM advises you to keep a record of all your correspondence with the bank about the dispute, including dispute forms, police reports, and any reference numbers given by the bank.
3. What if you get charged interest in your credit card bill for not paying the unauthorised transaction (which is still under investigation)?
“If a customer sees interest or late payment charges related to the disputed fraudulent amount which is imposed during the investigation period, they should contact the bank’s customer service or fraud department immediately to highlight this discrepancy.”
You should point out that the transaction is under dispute, and that regulations state that there should be no such charges during the investigation period.
Where to complain if the late payment charges are not removed after you contacted the bank?
- You can bring this matter up further with the bank’s complaints unit.
- If your complaint is still unresolved after raising it to the bank’s complaint unit, you can lodge a complaint with the Financial Markets Ombudsman Services (FMOS).
(FMOS handles disputes for direct financial losses of up to RM250,000 of certain products and services, such as disputes for unauthorised credit card use, and unauthorised transactions through online banking.)
4. ‘Yes, temporarily, the fraudulent amount might affect the available credit limit’
The credit limit is the maximum amount you can spend using your credit card.
Until the dispute is resolved and the fraudulent amount is reversed, you may find that you have less available credit limit.
“If a fraudulent transaction takes up, say, RM1,000 of a RM5,000 limit, the available credit limit will temporarily be reduced to RM4,000.”
“Alternatively, customers may also approach the respective bank for a temporary increase in the limit (where applicable), if required.”
So when you report the fraud, ABM said you should also ask your bank:
- About the status of your credit limit.
- When you can expect the disputed amount to be provisionally credited back or removed from the outstanding balance (which will restore your credit limit).
ABM said you should continue to monitor your available credit limit through the bank’s online banking platform or mobile app, to ensure it is restored once the dispute is resolved.
How long do banks take to investigate unauthorised transactions on credit cards?
“The timeframe for banks to investigate unauthorised transactions on credit cards in Malaysia can vary, but most banks aim to resolve disputes within a specific period, guided by internal SOPs and regulatory expectations.
“Generally, banks usually acknowledge receipt of a dispute report very quickly, often within 1-3 working days.
ABM said the full investigation period can range from 14 working days to up to 180 days (for complex cases).
This will depend on how complex the fraud was; the specific bank’s internal processes; and also the need to gather information from merchants or other banks (especially for international transactions).
You can prevent credit card fraud when shopping online by looking for websites with more secure payment systems. — AFP pic
Part III: After the investigation
If you disagree with the outcome (such as not getting a full reversal of the unauthorised transactions), ABM says the standard process to appeal a bank’s decision in Malaysia involves these three steps:
- Internal appeal/Review within the bank: “The first step should always be to appeal directly to the bank’s dedicated customer resolution unit. Many banks have a specific process for handling appeals to initial decisions.
“You should provide any new information or arguments to support your case.”
If necessary, the customer resolution unit may bring up your case to the bank’s higher management for a more expedient resolution.
- Secondly, you may also reach out to BNM via web form at telelink.bnm.gov.my or call 1-300-88-5465 for general enquiries or complaints.
- Finally, if you are still not satisfied with the outcome of the disputed transaction, you can contact FMOS for help.
ABM listed some practical reminders:
- Act immediately
- Keep meticulous records
- Understand your bank’s policies
- Monitor your accounts diligently
- Be prepared to provide information
- Question charges
- Know your rights
- Be patient but persistent and consider alternative dispute resolution
Prevention tips
ABM said customers can adopt these best practices and measures to prevent credit card fraud:
- Never share your card details or authentication credentials (such as your credit card PIN number or one-time-passwords (OTP) for transactions) to others.
- Enable SMS/email/push notification alerts from your bank.
- If possible, use 3DS-enabled platforms when making online payments using your credit card, and verify the transactions before you proceed to approve them. (3DS-enabled platforms are more secure, and may for example need an OTP and push notification for the payment to be made).
- When shopping online, look for websites with “Verified with Visa” or “MasterCard SecureCode” for safer payments.
