Banks urged to move beyond passwords as fraud evolves

Malaysian financial institutions should move beyond traditional passwords and one-time passwords (OTPs) and adopt passwordless authentication to counter increasingly sophisticated digital fraud, according to Indonesian digital identity and fraud prevention company VIDA.

Speaking at the AIBP Conference and Exhibition Malaysia 2026, VIDA founder and chief executive officer Niki Luhur said digital fraud has grown into a global criminal ecosystem, where a single compromised device can trigger a chain of attacks, from malware that hijacks banking sessions to stolen funds being channelled through mule accounts before being transferred offshore.