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Showing posts with label Security. Show all posts
Showing posts with label Security. Show all posts

Monday, September 16, 2024

Engagement is vital

 

Chinese Coast Guard vessels fire water cannons towards a Philippine resupply vessel Unaizah May 4 on its way to a resupply mission at Second Thomas Shoal in the South China Sea in March. — Reuters

THE South China Sea is a bustling waterway with growing freight and naval passages, combining widespread commercial and military interests.

More than 80% of world trade exceeding US$5 trillion (RM21.67 trillion) in value traverses these much-contested waters each year, fusing high economics with heated geopolitics.

Not least, the South China Sea sees a convergence of intemperate conduct by some claimant countries alongside some hard-nosed commonsensical prudence. Most claimants to these waters including Malaysia opt for the latter approach.

Brunei, China, Malaysia, Philippines, Taiwan and Vietnam are the contending claimants to part or all of the Spratlys, a group of rocks, reefs, shoals and other maritime features in the South China Sea.

Indonesia and China have rival claims to the Natuna Islands at the southern end of the sea, on the cusp of the Natuna Sea. Indonesia has renamed the area the North Natuna Sea, but whether that helps solidify its stake is unclear.

Among Malaysia’s claims are Luconia Shoals, at the mid-point between Sarawak’s shore and the fullest extent of Malaysia’s Exclusive Economic Zone (EEZ) 200 nautical miles from shore.

On August 29, the Philippine Daily Inquirer newspaper reported that China had sent a diplomatic note to the Malaysian Embassy in Beijing protesting Malaysia’s oil exploration activities at Luconia Shoals.

Such official notes between governments are nothing new, but always confidential or classified. How it leaked for the Inquirer to expose it to the world should be investigated, and Malaysia is doing that.

Context can help explain the newspaper’s motivation. Among all the claimant parties, the Philippines backed by its US ally’s military forces is the most assertive in trying to face down China on the high seas.

Until the first half of this year, Vietnam seemed to be an informal partner of the Philippines in confronting China over its claims. Then after an abrupt change of President and a Deputy Prime Minister, Vietnam warmed to China again and the Philippines was left without an Asean partner.

Exploiting the release of China’s diplomatic note could provoke Malaysia, or some Malaysians, to seek a tougher line with Beijing.

The news report described China’s mild note to Malaysia as a “warning”, just when China and Malaysia are on the best of terms marking the 50th anniversary of their diplomatic relations this year.

Rival claims between China, Taiwan, Vietnam and the Philippines are more conflated with one another than with Malaysia’s and Brunei’s limited claims further south. Philippine claims may be more troubling for Malaysia because of its on-off claims to Sabah and the implications on maritime territory off Borneo’s north coast.

On Dec 12, 2019, Malaysia filed its claim to an extended continental shelf with the UN Commission on the Limits of the Continental Shelf off northern Sabah. Both China and the Philippines were upset, but Manila displayed far more drama.

Beijing sent a delegation to Kuala Lumpur to seek clarification. In an unofficial capacity, I explained that Malaysia’s act was consistent with the UN Convention on the Law of the Sea (Unclos), which China and Malaysia had signed and ratified.

The delegation asked follow-up questions, took notes, and left without any complaint, argument or “warning”. The Philippines was particularly stung because Malaysia’s move undermined its claim to the entire Kalayaan Island Group between northern Sabah and southern Mindanao, and to Sabah itself, both of which Malaysia rejects.

The Marcos Jr government is not pressing Manila’s claim to Sabah, relegating it to a “private matter” among Sulu claimants. However, as long as their illegitimate claim to Sabah is not fully revoked and annulled, Philippine-Malaysia relations will remain constrained and their rival claims in the South China Sea will stay complicated.

Manila’s confrontational approach towards China is unlikely to gain traction from other Asean nations favouring pragmatism on at least five key issues.

First, the South China Sea disputes should see a conclusive resolution sooner or later, but preferably sooner rather than later.

Second, that resolution must be political and diplomatic, not military. There can be no military “solution” of any kind, so posturing on the high seas makes any resolution harder or impossible to achieve.

Third, naval brinkmanship begets naval brinkmanship. Residual goodwill, if any, disappears while the prospect of a peaceful settlement diminishes.

Fourth, avoiding force and confrontation in seeking a solution does not mean abandoning the search for solutions. Instead it reflects a thoughtful maturity enabling real solutions to be reached jointly, fully consistent with Asean’s Treaty of Amity and Cooperation that claimant parties already accept.

Fifth, talking to another claimant is to engage the other party in meaningful discussion. It does not imply accepting the other party’s rival claims unconditionally.

China’s nine-dash line in the South China Sea began as an 11-dash line of a 1947 official map by the Nationalist Government under Chiang Kai-shek’s Kuomintang Party. It lost the 1949 civil war and escaped to Taiwan, whose 11-dash line today still claims virtually all the South China Sea.

In 1952 Vietnam negotiated with China to remove two of the 11 dashes close to its coast. Later Taiwan’s provocations resulted in Beijing declaring a 10th-dash line off the island’s east coast but not in the South China Sea.

China’s nine-dash line claim covers such features as banks, cays, reefs and shoals in the area but not the international waters between them. Two important lessons from these developments are clear.

One, peaceful negotiations can result in a revision of the precise scope of China’s maritime claims. The Taiwan Strait and Taiwan, which claims more of the South China Sea than China, are “more core” to Beijing than the legacy claims of lines whose exact coordinates Chinese cartographers themselves are uncertain about.

Two, confrontations are much more likely to worsen the situation. In the headlong rush into military posturing threatening a war with no winners, the choice of which is the better, saner approach is obvious enough.

 Bunn Nagara is BRI director and senior fellow as well as Perak Academy honorary fellow. The views expressed here are solely his own.

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Of leaked notes and ruffled feathers


Saturday, August 17, 2024

Charged with crypto ransom, The dark allure of crypto-currency


 Six accused of abducting Chinese national with four others at large

SEPANG: A married couple and four others have been charged with kidnapping a Chinese national last month and demanding a ransom of USDT1mil (RM4.44mil) in cryptocurrency.

Chen Jun Hiong, 28; Law Han Wei, 28; Dhinnesh Tan Kin Yuan, 29; Jong Li Jiat, 25; and husband and wife Loh Wei Jian and Wong Xiao Yen, both 29; pleaded not guilty to the charges before Sessions Court judge Amir Affendy Hamzah here yesterday.

According to the charge sheet, the six, along with four other individuals still at large, are accused of wrongfully detaining the Chinese man for a ransom amounting to USDT1,007,696.

USDT is the symbol for Tether, a cryptocurrency that is pegged to the US dollar.

The offence was allegedly committed at the Cyberjaya exit of the Maju Expressway (MEX) on July 11 at about 11am.

The charges under Section 3 (1) of the Kidnapping Act 1961, read together with Section 34 of the Penal Code, provide for a minimum prison sentence of 30 years or a maximum of 40 years and caning, if convicted.

The prosecution was handled by deputy public prosecutor Mohamed Wafi Husain while the accused were represented by counsels G. Freda Sabapathy (Chen), Mohd Zali Shaari (Law), Nur Aminahtul Mardiah Md Nor (Tan), P. Haresh (Jong) and Bernard Francis (Loh and Wong), Bernama reported.During the proceedings, Mohamed Wafi did not propose any bail as the offence is non- bailable.

However, each defence counsel requested bail for their client, which the court rejected.

“After considering all arguments and the nature of the charges, the court has decided that bail will not be granted,” the judge said, setting Oct 8 for the submission of documents.

Earlier this week, it was reported that police are still tracking down four more suspects believed to have been involved in the kidnapping near the MEX toll plaza, Cyberjaya, on July 11.

Selangor police chief Datuk Hussein Omar Khan confirmed that the four suspects – three men and a woman – were part of an 18-member gang responsible for planning and executing the kidnapping.

They are believed to still be in the country.

On Aug 3, police shot and killed four suspects in a shootout in Skudai, Johor. The suspects were also believed to be involved in the kidnapping case.

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The dark allure of crypto-currency 


PETALING JAYA: Anonymity, speed and global accessibility are some of the reasons why cybercriminals prefer to demand ransom to be paid in cryptocurrency, say criminologists.

Financial forensics expert Raymon Ram said unlike traditional financial systems, cryptocurrency transactions can occur without intermediaries.

“The irreversible nature of these transactions ensures that once the ransom is paid, victims cannot recover the funds, offering criminals a level of security,” he added.

Raymon also said that by using digital currency, criminals such as kidnappers could easily launder the ransom money by leveraging on the pseudo-anonymity and decentralised nature of cryptocurrency systems.

“After receiving the ransom, typically in popular cryptocurrencies like Bitcoin or stablecoins like USDT, criminals often employ tactics such as mixing services and chain-hopping.

“Mixing services obscure the transaction trail by blending the ransom with other funds, while chain-hopping involves converting the cryptocurrency across different platforms and coins, making it harder to trace.”

Raymon said enforcing strict identity verification and transaction monitoring can make it harder for criminals to launder their illicit gains.

Criminologist Datuk Seri Dr Akhbar Satar agreed, saying that using cryptocurrency as ransom has been some criminals’ modus operandi as it would be harder for authorities to trace them.

Akhbar, who is also Malaysian Association of Certified Fraud Examiners president, said that the recently gazetted Cyber Security Act 2024 would also help in enhancing resilience against emerging threats involving cryptocurrency.ttps://dai.ly/x942lqg


Sunday, June 23, 2024

illions stolen from bank with insider help; Theft prompts security review

KUALA LUMPUR: The suspects linked to the siphoning of millions from a bank targeted their victims based on insider information, says Bukit Aman.

Bukit Aman Commercial Crime Investigation Department (CCID) director Comm Datuk Seri Ramli Mohamed Yoosuf (pic)said the group stole the money in stages after they had identified high-value account holders.

“The money was taken out via the bank counter and the first one was conducted around April. Several more were done in May and June.

“With inside help, the money was taken out according to bank procedures. The case only came to light after an account holder went to the bank to update details,” he said at a press conference yesterday. 

He said it was possible that syndicate members who were working in the bank also directly facilitated the transactions.

Among those caught included a bank manager.

Investigations showed that the mastermind had expertise in forgery and the syndicate members would use forged identifications to take money out of targeted accounts. 

“The details would be the same but the photo and thumbprints would be changed,” he said, adding that forged documents were then used to facilitate the money transfers.

Meanwhile, another case has been detected, with losses involving RM551,000.

“This was done at another bank earlier in the year and we are also investigating that case,” he said.

When contacted, Comm Ramli said 13 people, including four bank employees, were detained recently in connection with millions of ringgit that vanished.

Arrests were mostly made in Kota Kinabalu with one suspect caught in Padang Besar, Perlis.

The case is currently being investigated under Section 420 of the Penal Code for cheating.

“The involvement of bank personnel in commercial crime is a very serious matter.

“In the past, we have encountered cases where bank personnel were complicit in crimes such as criminal breach of trust or embezzlement.

“There are also those who were in cahoots with theft or scam syndicates,” he said.

Comm Ramli urged financial institutions to improve their security such as tightening procedures or imposing stricter measures in regard to withdrawal from accounts.

“Such measures are necessary to prevent theft or missing funds from customers’ bank accounts.

“We feel that improvements are needed for the sake of the account holders,” he said.

From 2022 to June 15 this year, a total of 485 cases of missing funds from bank accounts have been recorded involving RM35.01mil in losses.

“From the overall statistics, this year alone we recorded RM25.76mil in losses and 65 cases.

“The highest number was 225 cases last year, but it involved only RM4.82mil, followed by 195 cases in 2022 involving RM4.42mil,” he said.

Besides the involvement of “inside men” in financial institutions, Comm Ramli said another factor that could have contributed to the missing funds was disclosure of banking details to a third party.

“Our investigations revealed that some victims might have intentionally or unintentionally revealed details of their online banking username and password,” he said.

Comm Ramli said scammers are known for using the phishing technique to dupe victims via email or text messages.

He advised the public to stay vigilant and be wary of tactics used by scammers.

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Theft prompts security review

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Theft prompts security review


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PETALING JAYA: A recent embezzlement case involving bank staff in Kota Kinabalu has sparked calls for tighter security measures in financial institutions.

Universiti Sains Malaysia criminologist Datuk Dr P. Sundramoorthy (pix) said the recent case that saw over a dozen arrested was both concerning and a wake-up call.

“Although the number of wrongdoings and criminal acts by bank employees may be very minimal, it cannot be ignored.

ALSO READ: RM24.2mil fraud: BNM requests prompt refunds to all affected account holders 

“The rakyat, investors and the business community depend on the banks to safeguard their money.

“We don’t have a choice in this matter.

“Banks must aggressively play a role in eliminating undesirable employees,” he said, adding that banks need to invest in internal security and loss prevention departments, even if it incurs costs.

“These departments should have the expertise to detect embezzlement, fraud and misconduct by employees,” he said.

“Security investments are assets, not liabilities.”

ALSO READ: Millions stolen from bank with insider help

Drawing comparison with law enforcement bodies, he added that employees at highly sensitive areas should be rotated to avoid any potential for leakages within the bank, even if they are competent in their jobs.

“This is especially important for positions with access to customer accounts,” he said.

Pre-employment screening must also be done for all employees with regular assessments for those in service, he added.

Duties must also be “robustly” segregated, with dual authorisation practices implemented as well.

“That was a substantial amount of money (lost) and I hope measures will be taken.

“Since it was an inside job, the bank must be responsible for covering every single ringgit and sen that was misappropriated.

“Banks must be proactive and they should work together with the victims and law enforcement to ensure such incidents are reported.

“Employee pilferage is not new but it is also not frequent. We must not tolerate it,” he said, adding that harsh penalties and criminal charges must be meted out on those involved.

Such cases, he said, also affects the credibility of the bank involved as customer confidence will drop.

Previously, Bukit Aman Commercial Crime Investigation Department (CCID) director Comm Datuk Seri Ramli Mohamed Yoosuf said that four police reports were lodged since early June regarding suspicious transactions, with losses estimated to be around RM24.2mil.

As of June 18, the police have arrested 13 suspects aged between 22 and 52 years old.

Four suspects were found to be employees of the bank. 

https://www.thestar.com.my/news/nation/2024/06/22/theft-prompts-security-review

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Sunday, April 14, 2024

Getting it right on the road

CLICK TO ENLARGE

Potentially lifesaving: Being aware of emergency phones along highways and Rest and Service areas can contribute to making journeys safer. — ART CHEN/The Star

PETALING JAYA: With millions travelling on the highways during the festive Hari Raya season, paying attention to the road safety features and tips could help reduce accidents while also saving lives, say road safety experts.

The advice comes as a total of 2,929 road accidents and 53 deaths were recorded in just a day on the eve and first day of Raya on April 9 and 10 respectively.

Road safety expert Assoc Prof Dr Law Teik Hua from Universiti Putra Malaysia said most drivers tend to overlook the important road safety features along the major highways.

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“Educating the public about road safety features along highways is crucial, particularly with the expected increase in traffic during the Raya festive period.

“Highlighting lesser-known road safety features, such as emergency phones at intervals along the highway and strategically located Rest and Service Areas (RSA), are essential for enhancing driver awareness and promoting safer journeys,” he said when contacted yesterday.

Other common safety features usually taken for granted by drivers are the lane markings, reflective studs and the Variable Message Signs (VMS) which are strategically located along the highways.

“The VMS provide real-time updates on traffic conditions, accidents and road closures, enabling drivers to make informed decisions and adjust their routes accordingly to avoid potential hazards,” he said.

The lane markings and reflective studs serve as visual cues, especially during night time or bad weather, by helping drivers stay within their lanes while maintaining safe distances from other vehicles, Law added.

While there are currently traffic surveillance cameras to help monitor traffic, he suggested the use of AI-powered analytics and predictive modelling as tools to further enhance road safety along the highways.

Law noted that ultimately, it is raising public awareness among drivers on such road safety features which is crucial.

PLUS Malaysia Bhd (PLUS) expects over two million vehicles to be on major highways during the Raya holidays during peak on April 5, 6, 9, 12, 13 and 14 which is a 15% increase from the usual 1.82 million daily traffic volume.

Highway concessionaire Anih Bhd expects some 1.9 million vehicles to use the KL-Karak (KLK) Expressway and about 882,000 travelling on the East Coast Expressway Phase 1 (LPT1) concessionaire during the festive period.

Some 2.4 million vehicles are expected to travel in and out of Penang over the six-day Raya festive period starting from April 8.

Malaysian Road and Transportation Safety Association president MD Hairolazaman Muhamed Nor said drivers and motorcyclists should be aware of broken down or parked vehicles on emergency lanes or road shoulders on highways.

“Motorists should be on the lookout for such stationary vehicles on highways.

“The driver and passengers of the stalled vehicles should step out quickly and take shelter at a safe spot.

“Preferably, they should be behind the steel safety barriers or railings before seeking help,” he said.

Hairolazaman also said that planning one’s journey could help ease difficulties that might arise during emergencies while on the highway.

Malaysian Institute of Road Safety Research (Miros) chairman Prof Dr Wong Shaw Voon said that some cars nowadays have “eCall” feature which their owners may not be aware of.

“The eCall feature will automatically contact emergency responders in the event of a serious road accident including providing GPS coordinates to emergency services,” he said when contacted.

He added that eCall system would likely become a common added safety feature in cars which could prove helpful in the event of a serious crash.

He also advised drivers of stalled vehicles to move their vehicles to a safe area and stay behind the crash barriers while waiting for help to come.

“Some drivers think they will be safer waiting in their stalled vehicles but it is more dangerous,” he added.

PLUS Malaysia Bhd senior general manager of operations Mohd Yusuf Abd Aziz advised motorists to stay updated on traffic flow and plan their travel schedule using the PLUS smartphone application.

“Travel duration would be longer due during the peak periods due to increased traffic.

“Ensure your vehicles are roadworthy for the travel and pull over at rest areas for a break after every two hours of driving,” added Mohd Yusuf.

Road Safety Experts Association and Safety Driving Centre advisor Datuk Suret Singh said motorcyclists, especially those on smaller machines, and drivers of heavy vehicles such as buses and lorries, should keep to the left lane or slow lane at all times while on the highway.

“Motorcyclists riding at night should don luminous safety vests to stay visible to other motorists or they will be courting disaster,” the former Miros chairman added.

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Thursday, November 23, 2023

Using algorithms to check fraud

New way: In addition to developing algorithms to trace money that could have ended up in the hands of fraudsters, the NFP will be able to forecast the pattern of mule accounts. — AZLINA ABDULLAH/The Star

New National Fraud Portal to streamline end-to-end scam responses

PETALING JAYA: The National Fraud Portal (NFP) will be able to predict the pattern of mule accounts as well as create algorithms to track funds that may have fallen into the hands of scammers, says Bank Negara governor Datuk Abdul Rasheed Ghaffour.

Bank Negara, he said, had decided to put more effort into curbing fraud, especially online financial fraud, as the perpetrators were not only “getting smarter by the hour” but also more sophisticated in their use of new technologies.

These efforts, said Abdul Rasheed, were also in line with the National Risk Assessment of 2023 findings that fraud was one of the five high-risk crimes beside corruption, drug trafficking, smuggling and organised crime.

ALSO READ:  NFP requires certain policies to be effective, say experts

“Bank Negara is actively collaborating with PayNet and the financial industry to launch the NFP by the middle of next year.

“Building on the framework and foundations of the National Scam Response Centre (NSRC), the NFP will streamline the industry’s end-to-end scam response, from initial identification and reporting to the recovery of funds.

“This platform will enhance efficiency by automating processes, enabling a more rapid response to assist victims.

“We envision the NFP expanding to include predictive assessments of mule accounts, advanced analytics, and fund-tracing algorithms,” said Abdul Rasheed, declining to divulge further details.

ALSO READ:  Budget 2024: National Scam Response Centre allocation doubled to RM20mil

PayNet is the national provider of financial market utilities, set up to build inclusive, accessible and efficient payments and financial ecosystems for Malaysia.

Bank Negara is PayNet’s single largest shareholder, with 11 of the country’s financial institutions as joint shareholders.

Abdul Rasheed said since the NSRC was launched in October 2022, it had received over 19,000 reports on scam cases, leading to the freezing of over RM60mil and the identification of 43,000 mule accounts.

The NFP currently being worked on by the central bank stems from the success of measures such as the “kill switch” for customers introduced by all major banks, he said.

“Falling victim to financial fraud is undoubtedly difficult for those affected, with some victims losing their entire life savings and struggling to regain their economic footing.

ALSO READ: National fraud portal to be ready by mid-2024 - BNM

“With the support of the banking associations, all major banks have implemented these measures, including restricting authentication apps to a single device and introducing a ‘kill switch’ for customers.

“We have observed a 58% reduction in unauthorised online banking transactions reported to the NSRC in the last five months.

“Bank Negara is now also assessing a number of additional policy enhancements on the handling of financial scams.

“This includes strengthening the requirements for financial institutions to undertake more robust investigations, adopt stronger preventive controls, and review the effectiveness of these mechanisms.

“We also plan to clarify the responsibilities of customers to protect themselves and their rights if they fall victim to fraud,” said Abdul Rasheed.

Bank Negara’s efforts to curb scams have been ongoing, with the past year seeing financial institutions migrate from the one-time password (OTP) system to having a ‘cooling-off period’ for the first-time registration of online banking services or secure devices and limiting authentication to one device per customer.

Banks now have their own scam hotlines with more advisories for their customers.

A source with Bank Negara said the portal’s secrecy was one of the key factors in ensuring that scammers were not working in tandem with its development.

“It is crucial that we are one step ahead of the scammers. The problem has always been that we are always running behind the scammers, and now we are playing catch-up,” said the source.

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