Malaysian government warns against protection scam

Protection of financial assets is free of charge, says official

Malaysian government warns against protection scam

Insurance News

By Gabriel Olano

The Malaysia Deposit Insurance Corporation (PIDM) has warned the public to be cautious of several parties pretending to be from the government and requesting payment for protection of bank deposits and insurance policies.

Rafiz Azuan Abdullah, PIDM’s chief executive, clarified that the protection PIDM provides to bank depositors and insurance/takaful policyholders is automatic and free of charge.

“PIDM does not require payment of any kind from members of the public. It is entirely funded by premiums or levies assessed on its member institutions and does not receive public funds to operate,” he told The Star.

PIDM is a government agency that provides protection for owners, whether individuals or businesses, of bank deposits and insurance policies in case of the bank or insurer’s failure.

Recently, it learned that members of the public were contacted by several individuals claiming to be part of various government organisations and requesting payment in order to receive protection from PIDM in what seems to be a scam.

“We also remind members of the public not to disclose their financial information, in particular their bank account or credit card details to third parties,” Rafiz added.

Related stories:
Great Eastern mulls selling stake in Malaysian operations
Malaysian insurance associations deny taking cut from policyholders’ medical expenses
Malaysia’s anti-fraud system operational by October

Keep up with the latest news and events

Join our mailing list, it’s free!