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Malaysia Welcomes End to ATM Withdrawal Fees Amidst Rising Fraud Concerns
🇲🇾 Malaysia /Economy & Trade

Malaysia Welcomes End to ATM Withdrawal Fees Amidst Rising Fraud Concerns

From Utusan Malaysia · () Malay

Translated from Malay, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • Malaysians welcome the abolition of the RM1 interbank ATM withdrawal fee, effective July 1, which offers some relief amid rising living costs.
  • Despite the fee waiver, financial fraud, including AI and deepfake scams, is increasing, with losses reaching RM2.97 billion in 2025.
  • Authorities emphasize the need for continuous prevention, education, and awareness campaigns on smart and safe digital financial practices, especially for vulnerable groups.

The abolition of the RM1 fee for interbank ATM withdrawals, effective July 1, has been met with widespread approval in Malaysia. This move offers a much-needed reprieve for citizens grappling with the escalating cost of living, particularly benefiting those in areas with limited ATM access.

The move is seen as able to reduce the burden of citizen transactions slightly in an environment of rising cost of living.

— Utusan MalaysiaReporting on the public's reaction to the fee abolition.

However, the convenience of digital payments, which saw 8.44 billion transactions in 2025, is increasingly shadowed by sophisticated financial fraud. Payments Network Malaysia (PayNet) reports that scams are evolving, employing advanced tactics like artificial intelligence, deepfakes, and social engineering, making them harder to detect and prevent.

The increase in the use of digital payments poses new challenges, especially with increasingly sophisticated financial fraud, including the use of artificial intelligence (AI), deepfake and social engineering which are harder to detect and prevent.

— Payments Network Malaysia (PayNet)Highlighting the evolving nature of digital fraud.

National Police Chief Tan Sri Mohd Khalid Ismail highlighted the severity of the issue, stating that online fraud losses reached RM2.97 billion in 2025, a significant increase from the previous year. He stressed that these figures represent thousands of victims who have lost their livelihoods and futures. Consequently, there is a pressing need to bolster prevention efforts, education, and awareness campaigns on cybersecurity and data protection.

Losses due to online fraud crimes in 2025 reached RM2.97 billion, an increase of RM1.40 billion compared to RM1.57 billion in the previous year.

— Tan Sri Mohd Khalid IsmailStating the financial impact of online fraud.

While cashless transactions offer flexibility and convenience, they also present challenges. Vulnerable groups, including the elderly, urban poor, and those in rural areas, may struggle to adapt due to technological limitations. Continuous efforts are required to ensure digital literacy and financial inclusion for all segments of society.

Therefore, prevention, education and the cultivation of safety awareness should be the priority that needs to be continuously strengthened.

— Tan Sri Mohd Khalid IsmailEmphasizing the need for proactive measures against fraud.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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