Today's sharing is a little different from our usual tax and compliance updates. This one is personal. I know someone who have been scammed, and the heartbreaking part is not just losing the money to fraudsters, but walking away with nothing after approaching the bank as well. I am sharing this because I genuinely hope more people get to see it, and equally, I hope it reaches those in the banking industry who have the power to do more.

𝐁𝐚𝐜𝐤𝐠𝐫𝐨𝐮𝐧𝐝 𝐨𝐟 𝐭𝐡𝐞 𝐜𝐚𝐬𝐞 The deceased was an 85-year-old CIMB Preferred Customer of 30 years with a simple transaction profile of cheques and JomPay payments. Between 24 June and 7 July 2022, scammers impersonating police officers deceived him into handing over his debit card and PIN, and proceeded to drain RM529,774.79 from his account over 14 consecutive days at approximately RM40,000.00 per day. He passed away thereafter and his estate brought the claim against CIMB for negligence and breach of banking duty.

𝐏𝐨𝐬𝐢𝐭𝐢𝐨𝐧 𝐨𝐟 𝐭𝐡𝐞 𝐀𝐩𝐩𝐞𝐥𝐥𝐚𝐧𝐭 The estate argued that CIMB was obliged under the Quincecare duty, recognised in Malaysian law, to pause and investigate when transactions show reasonable grounds for suspicion. Fourteen consecutive days of maximum daily withdrawals from a 30-year customer who had never used ATM or MEPS heavily was a clear red flag. CIMB's own witness admitted the bank had fraud detection systems, was trained on BNM guidelines, and yet made no call, sent no SMS alert, and took no action throughout the entire 14-day period.

𝐏𝐨𝐬𝐢𝐭𝐢𝐨𝐧 𝐨𝐟 𝐭𝐡𝐞 𝐑𝐞𝐬𝐩𝐨𝐧𝐝𝐞𝐧𝐭 CIMB argued that the transactions were validly authorised using the deceased's own card and PIN, and that his voluntary act of surrendering his credentials broke the chain of causation. The bank also relied on a UK Supreme Court decision to argue that the Quincecare duty does not apply where the customer himself hands over his credentials.

𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧 𝐨𝐟 𝐭𝐡𝐞 𝐂𝐨𝐮𝐫𝐭 The High Court found in favour of the Plaintiff. The deceased never personally instructed CIMB to make payments, it was the scammers who used the card and PIN directly. After the third day, a detectable pattern had emerged and the bank had the tools, authority, and opportunity to intervene. It did nothing. Liability was apportioned at 40% to the deceased and 60% to CIMB, with judgment entered for RM317,864.87 together with interest at 5% per annum and costs of RM100,000.

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