E-Wallet Companies Face 7 Day Scam Refund Rule if Users Get Scammed

Malaysia is moving toward a tougher standard for accountability in digital payments, with Prime Minister Anwar Ibrahim stating that eligible e wallet issuers that fail to meet Bank Negara Malaysias required fraud safeguards must fully compensate affected scam victims within seven working days.

The requirement applies even where the customer‘s own negligence contributed partly to the loss, provided the e wallet issuer itself failed to implement the preventive measures required by the central bank. The policy signals a significant shift in the balance of responsibility between consumers and digital payment providers as Malaysia’s economy becomes increasingly dependent on electronic transactions.

Anwar outlined the position in a written parliamentary reply following a question on how the government planned to strengthen protection and compensation for consumers caught in scams involving e wallets and digital payment services. The government has been working through Bank Negara to strengthen safeguards across online banking and electronic money services as digital payments become more deeply integrated into daily economic activity.

Bank Negaras requirements include stronger transaction authentication, cooling off periods for certain high risk transactions, restrictions that link account verification to a single registered device, dedicated fraud hotlines and a kill switch that allows customers to freeze their accounts when fraud is suspected.

Malaysia has also strengthened the machinery used to respond after scams are reported. The National Scam Response Centre coordinates efforts among relevant agencies, while the National Fraud Portal has been introduced to automate parts of the process used to trace and freeze suspicious funds.

The policy comes as concerns over digital fraud continue to intensify. QR code scams alone resulted in RM28.67 million in reported losses during the first six months of 2026, while more than 5,000 related cases were recorded over the same period.

The policy could also influence public confidence in Malaysias broader digital economy. Consumers are more likely to embrace cashless services when they believe the institutions operating those systems will share responsibility when security controls fail. That confidence matters not only to e wallet companies but also to banks, merchants, fintech firms and other businesses building services around digital payments.

As digital transactions become increasingly central to the Malaysian economy, the question is no longer simply how quickly money can move, but how effectively the financial system can protect it when criminals move just as quickly.