Your Personal Banking Referrence




Introduction

Internet banking allows you to manage your finances from home, work or from just about anywhere in the world. The purpose of this article is to provide information on Internet Banking services offered by licensed banking institutions in Malaysia.

Banking On The Internet

Currently, only banking institutions licensed under the banking and financial institution act 1989 and the Islamic Banking Act 1983 are allowed to offer Internet Banking services in Malaysia. A list of banking institutions that were granted approvaal by Bank Negara Malaysia to offer Internet Banking services is available on Bank Negara Malaysia’s home page www.bnm.gov.my

Fast and Convenient

Internet banking provides you with a fast and convenient way to undertake various banking transactions from comfort of your home, office or wherever you may be, during and after banking hours. Most banking institution offer service 24 hours a day, 7 days a week. You avoid travelling time and the need to wait in queues to access banking services or to pay bills.1

What Is Needed To Do Internet Banking

Internet Banking does not require special software or access to a private network, but conducted through the Internet. If you have a computer with Internet access, a modem and telephone line, an Internet browser and have registered for an Internet Banking service with your banking institution, then you can conduct Internet banking virtually anywhere in the world. It is recommended that you install a personal firewall and regularly update your virus protection software.

How To Apply To Be An Internet Banking User

You can apply for Internet Banking facilities if you have an account with a banking institution that offers Internet Banking services. Details on the application procedures are available on the banking Institution’s websites.

Banking Services Available Online

With Internet Banking facilities, you will be able to perform a variety of banking transaction online. Depending on the banking institution, the main services offered through Internet Banking allows you to :

• Check your balances and statements online
• submit application for new accounts,credit cards or lonas online
• transfer funds between accounts(own and third party)
• pay bills, credit cards, loans and insurance premiums
• create, change and cancel standing orders
• request for cheque books and statements
• check the status of your cheques
• request for stop cheque payments
• apply for bank drafts and telegraphic transfer

Some additional services offered include interest rates calculator as well as foreign currency converters. Please check with your banking institution to obtain the full list of services offered and the additional features and channels that are available.

Before You Sign Up

Prior to signing up for the service, you are advised to read and understand the terms and conditions of the service. The terms and conditions should provide :

• Information on the duties of the banking institution and customers
• Information on who will be liable for unauthorised or fraudulent transactions
• Mode by which you will be notified of changes in terms and conditions
• Information relating to how you can lodge a complaint and how a complaint may be investigated and resolved.

You should also discuss with your banking institution the risks involved in using Internet Banking services and to fully understand your rights and responsibilities.

Is Internet Banking Safe?

As in any other system, there is a risk involved in Internet banking. However, any potential risk could be minimised with banking institution’s continuous check on the security of the system and the care taken by you when using Internet Banking services.

Action taken by Banking Institutions to ensure security

Before starting out on Internet Banking, Banking institutions have spent a lot of time and effort to ensure that their Internet banking setup is safe for consumers. In addition, banking institutions offering Internet Banking are also required to comply with the minimum guidelines issued by Bank Negara Malaysia. Amongst the safety measures taken by the Banking Institutions are :

• Regular tests of the system to ensure its reliability
• provision of internet security arrangements to ensure a secure infrastructure.
• usage of a number of security technologies such as encryption,firewalls,automatic log-off and monitoring tools
• Installation of a system to detect and disable attacks from hackers
• undertake a periodic review every 6 months to assess possible risks and detect possible weakness in the banking institution’s risk management system.

Action You Should Take To Ensure Security

You too have a role in ensuring the safety of Internet Banking transactions. Some of the recommended action that you as a bank customer should practise are :

Do not reveal your login ID and password or pin

• keep your login ID and password or Pin confidential
• memorise it an do not write it down anywhere
• change your password regularly and avoid using easy to guess passwords such as names or birthdays. Ideally your password should be a combination of characters(uppercase and lowercase and numbers).
• check your transcation history details and statements regularly to make sure that there are no unauthorised transactions on your accounts or additions to the list of registered payees.
• If you suspect any unauthorised use of your accounts or that someone else may know your password or pin you should change your password or pin immediately and notify your banking institution.
• do not store your login ID and password or pin on the computer

Check for the right secure website

• before doing any online transactions or sending personal information make sure that you are in the correct website.
• you should also ensure that you are in a secure website by checking the Universal Resource Locator(URLs) to ensure that it begins with “https” and look for a display of closed padlock symbol on the status bar of your browser.
• always enter the URL of the website directly in to the web browser. You should avoid being re-directed to the website that may not be secure.

Protect your personal computer from hackers,viruses and malicious programs

• Install a personal firewall and a reputable anti-virus program to protect your personal computer from virus attacks or malicious programs such as “Trojan Horse”.
• You should also ensure that the anti-virus program is up-to-date and runs at all times
• always keep your operating system and web browser up-to-date with latest security patches in order to protect against weakness or vulnerabilities.

Be careful when downloading software

• when you receive a program or an attachment you should always check it with an updated anti-virus program to ensure that it does not contain any virus that could attack your personal computer
• never download any file or software from sites or sources which your are not familiar with or click on hyperlinks sent to you by strangers. Opening such a file could expose your system to a computer virus that could hijack your personal information including your password or pin.

Do not leave your computer unattended when logged in

• you should log off from internet banking site when you leave your computer unattended even if it is for a short while.

Always remember to log-off

• it is important that you log-off when you have completed your banking transactions
• you should clear the memory cache and transaction history after logging out from the website to remove your account information. This would avoid incidents of the stored information being retrieved by unwanted parties

Other measures

• you should not send any personal information particularly your password on pin via ordinary e-mail
• do not have other browser windows open while you are banking online
• you should avoid using shared or public personal computers to conduc your Internet banking transactions
• you are also advised to disable the “file and printer sharing” feature on your operating system
• if you have a security concern about your online accounts contacts your banking institution to discuss the issue and remedies.

Privacy of your personal information

• Both banking institutions and you have a role in ensuring privacy. Protection of your personal and financial information is an extremely important matter when banking via the internet. Bank Negara malaysia considers the privacy of consumer personal information to be an important element of public trus and confidence in Malaysia Banking System.
• All Banking institution offering internet banking have to adopt responsible privacy policies and information practices. Therefore banking institutions are required to prompt you with a message to inform you will be leaving the banking institutions’ websites and hence you will not be protected by the privacy policies and security measures of the banking institutions when you hyperlink to third parties from their websites.
• You are advised to read the privacy policy statement of the banking institutions posted at their websites prior to providing your personal information. By reviewing this policy you will know the type of information banking institutions collect and maintain about you. Banking institutions may want to share information about you with a related entity to market specific products that meet your needs and interests. If you do not want your banking institution to share your personal information with other without your permission you should request your banking institution for “opt out” option.