The identity verification provider plans to roll out the first phase of its updated system in early October to support the new MyKad format during electronic Know Your Customer (eKYC) checks.

The New Generation MyKad introduces changes to the card’s design and security features.

Organisations that rely on MyKad verification may need to update their systems to accommodate the new format.

The rollout has already exposed compatibility issues across some digital financial services.

Earlier tests found that the new MyKad could not be verified through TNG eWallet, Ryt Bank, AEON Bank and GXBank at the time.

For regulated financial institutions, eKYC typically involves several layers of identity checks beyond optical character recognition.

Nathan Cheong, Head of Product (AI) at Innov8tif, said,

“We are committed to giving our customers and the broader industry confidence that their digital onboarding processes can continue securely and smoothly throughout this transition.

Our team has actively prepared for this transition, ensuring our partners are supported with reliable, enterprise-grade technology from early October.”

Innov8tif is also working with the National Registration Department as it updates its MyKad verification capabilities.

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They typically stitch together a blend of real, stolen, manipulated and invented attributes until the composite is convincing enough to enter through the front door.

This shift moves away from years of defensive fraud management thinking. Fraud prevention has almost always focused on stolen credentials.

Now, attackers no longer need to steal an identity, as they can manufacture one.

Research from LexisNexis Risk Solutions backs this, indicating that more than one in ten frauds (11%) now involve a synthetic identity, representing an eightfold global YoY increase.

The most unsettling challenge for fraud prevention teams here is that there’s no longer a victim to raise an alarm immediately.

Generative AI and deepfakes are making these profiles all the more convincing, and manufactured identities are becoming remarkably difficult to detect.

Research from LexisNexis Risk Solutions’ latest ebook, Stopping Synthetic Identity and Deepfake Fraud, shares that 85% of synthetic identities examined were not flagged by third-party models.

What’s worse is that synthetic identity fraud is no longer isolated to a single market. It is happening more across regions and industries, and quickly becoming a global issue.

Which leaves an uncomfortable question for any fraud strategy still optimised for downstream threats: the exposure now sits upstream, at the point of onboarding.

What can you do about it?

Why Are Traditional Fraud Strategies Failing?

Traditional fraud strategies are starting to falter as synthetic identities are largely invisible at onboarding, which is the exact place point-in-time verification collapses.

When fraudsters can walk in the front door, downstream detection becomes either too late or costly. Static checks and siloed tooling struggle to detect AI-assisted personas that can appear consistent and “clean” at a single point in time.

Verification confirms that a set of attributes is valid and internally coherent. It does not establish that the person those attributes describe has ever existed. A composite built from real fragments clears the first bar comfortably, and the second bar is rarely raised.

And in a manufactured-identity world, the seams between tools create blind spots, and blind spots create risk exposure.

Kimberly Sutherland, the Global Head of Fraud and Identity at LexisNexis Risk Solutions, explained,

“Deepfakes vastly complicate digital identity verification. Protecting against this surge of attacks requires a solid line of defence incorporating end-to-end capture, fraud analysis and liveness checks. Even the smallest gap in your defences is like an open window that a fraudster can climb through.”

Left unattended, bad actors can use deepfakes to pass identity checks and create new accounts to make withdrawals and online purchases, launder crime proceeds, or abuse new customer bonus incentives.

The challenge, therefore, lies in determining whether the identity has a genuine, corroborated data footprint or whether it has been artificially constructed to appear legitimate.

How Do You Determine if You Can Trust an Identity?

While authenticity is necessary, it may not be sufficient on its own. An identity can be real and still represent elevated risk, too. Trust then comes into the picture, and it requires a mix of coherence and corroboration across attributes, behaviour and design signals.

This includes assessing if identity elements fit together, whether their patterns are consistent with genuine customer histories, and if the identity shows characteristics linked to synthetic formation or manipulation.

Real identities tend to have imperfect, inconsistent and long-running data footprints, like address changes and other forms of ‘data noise’.

Synthetic identities, meanwhile, can appear unusually clean or too perfect, with limited variation or an unrealistic density of corroborating data.

Research in the LexisNexis® Risk Solutions, Hidden in Plain Sight: Uncovering Synthetic Identity Fraud report showed that over 50% (of synthetic identities) were observed with solid but unremarkable credit scores above 650, demonstrating how convincing synthetic profiles can appear.

Now, what risk does this identity present now and over time? Risk is contextual and time-bound, and is not simply about whether an identity is legitimate. It can also involve whether it should be approved, challenged, limited or blocked at any given moment.

This requires ongoing trust monitoring and adaptive step-up, which allows your organisation to intervene only when evidence justifies the friction.

More Scrutiny Should Not Mean More Hurdles For You

Businesses cannot solve this by making every application harder. It’s tricky because genuine customers also bear the consequences of fraud controls through additional checks, delays, and manual human reviews.

LexisNexis Risk Solutions shares that assessing document, device, behavioural and network information has to be done together, so that businesses have a stronger basis for deciding which identity requires closer attention.

A suspicious connection or change in behaviour may justify another check, but evidence that continues to support trust should allow a customer to proceed without unnecessary interruption.

Many organisations already have elements of this capability. The difficulty is ensuring that findings from separate systems inform the same decision, rather than leaving each tool to assess its own small part of the customer.

Fraud also persists in the seams: between document checks, device intelligence, behavioural analytics and network insights.  Orchestration is what removes those seams by ensuring signals that friction is applied only when risk warrants it.

Done well, it means asking three questions in sequence: is the identity real, can it be trusted, and what risk does the identity present now and over time?

Download the LexisNexis Risk Solutions’ Stopping Synthetic Identity and Deepfake Fraud ebook to explore more on the warning signs and how to act on them without putting your genuine customer through more hurdles. 

Featured image edited by Fintech News Malaysia based on an image by muhagraph on Magnific

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Governor Abdul Rasheed Ghaffour said the country’s next phase of growth will require more specialised financing for areas such as advanced manufacturing, technology-intensive activities and the energy transition.

These sectors often involve longer investment horizons, larger upfront capital needs and higher technology and execution risks.

Despite national efforts to develop higher-value industries, financing remains concentrated in services, while manufacturing funding is still modest relative to the investment required.

Islamic Finance Takes on a Bigger Role

Abdul Rasheed noted that Islamic finance is well placed to address some of these needs through risk-sharing structures and more flexible financing models.

Islamic banking accounted for 48% of total financing in 2025, up from 25% in 2015, while the Islamic capital market grew from RM420 billion to RM670 billion over the same period.

BNM also sees scope for greater use of sector-specific Shariah structures and social finance to support emerging industries.

Financial institutions will also need stronger capabilities in sector analysis, structuring, data, talent and partnerships.

The direction will form part of BNM’s upcoming Financial Sector Blueprint 2027–2030, which is being developed around priorities including resilience, higher-quality jobs, sustainable businesses, renewable energy and climate readiness.

Featured image: Edited by Fintech News Malaysia, based on image by BNM

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The proposed stablecoin, UMYR, would be fully backed by Ringgit and used as an on-chain settlement instrument for tokenised money market funds.

Luno operates as a recognised market operator for digital asset exchange activities, while Halogen Capital and Kenanga Investors hold Capital Markets Services Licences.

The initiative will test real-time delivery-versus-payment settlement for fund subscriptions and redemptions, which could shorten settlement periods compared with conventional payment rails.

Under the proposal, UMYR would be issued through a ring-fenced entity within the Luno group.

It would be backed one-for-one by Ringgit held onshore in a segregated account with a regulated banking partner.

Luno would mint and burn UMYR against Ringgit received or disbursed, manage institutional onboarding and wallet whitelisting, and conduct daily reserve reconciliations supported by independent third-party attestations.

Halogen Capital and Kenanga Investors would use UMYR to settle subscriptions and redemptions involving their tokenised money market funds.

Both fund managers would remain responsible for fund management, the unit registry and investor obligations under their respective licences.

The proposed arrangement would operate as a closed-loop business-to-business system involving whitelisted institutional participants.

Retail clients would not take part in the initiative.

Scarlett Chai, Country Manager (Malaysia), Luno said,

“With Malaysia’s digital asset ecosystem moving from foundational setup to institutional capability, infrastructure like UMYR is essential.

By providing a 1:1 Ringgit-backed, fully segregated settlement instrument, we are showing how on-chain liquidity and real-time DvP settlement can operate seamlessly and responsibly within Malaysia’s existing regulatory framework alongside licensed industry leaders.”

Hann Liew, Founder and CEO, Halogen Capital, said,

“As an early adopter of tokenised funds in Malaysia, we see settlement as the next piece of the puzzle, and testing UMYR as a dedicated settlement instrument aligns perfectly with our vision for modern fund management.

Working within a regulated framework alongside SC-licensed partners ensures we can deliver faster, safer fund operations for institutional participants.”

Datuk Wira Ismitz Matthew De Alwis, Chief Executive Officer, Kenanga Investors Berhad, said,

“This will further complement our asset tokenisation efforts.

Paired with next-generation settlement infrastructure, we believe that the initiative will bring the industry much closer to unlocking the full benefits of tokenisation, building on the foundations we established with the launch of Myrra and Malaysia’s first tokenised funds.”

The collaboration remains exploratory, with any launch of UMYR subject to regulatory discussions and final agreements between the parties.

Featured image: (From left) Datuk Wira Ismitz Matthew De Alwis, CEO, Kenanga Investors Berhad; Hann Liew, Founder and CEO, Halogen Capital; Scarlett Chai, Country Manager (Malaysia)

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The card offers benefits across entertainment, beauty and shopping, including 20% discounts on selected SimplySiti and AFIYA products.

Cardholders can also receive a 20% discount on tickets to Siti Nurhaliza’s Gema Bumantara concert on 17 October 2026 at TM Stadium Nasional Bukit Jalil, along with a lifetime waiver on annual debit card fees.

AFFIN will offer 1,000 SimplySiti makeup palettes to customers who open an AFFIN LuminouSITI SA/-i account at Menara AFFIN @ TRX between 23 and 25 September 2026, subject to availability and applicable terms.

Selected Visa promotions will also allow customers to earn points redeemable for merchandise and concert tickets, with more privileges expected in the coming months.

The AFFIN LuminouSITI SA/-i account can be opened with a minimum deposit of RM50.

Customers must maintain a minimum balance of RM300 to qualify for additional benefits.

Datuk Wan Razly Abdullah, President & Group Chief Executive Officer of AFFIN Group, said,

“The AFFIN LuminouSITI Visa Debit Card brings elements of Dato’ Sri Siti Nurhaliza’s world into everyday life, offering more than a way to pay. It opens the door to exclusive privileges across music, beauty, shopping, travelling and dining, inspired by the qualities of confidence and aspiration that she represents.

At the heart of this collaboration is ‘Dunia Penuh Pesona’ or ‘A World Full of Enchantments’, offering a glimpse into Dato’ Sri Siti Nurhaliza’s personal favourites and must-haves, shaped by her journey as an artist, entrepreneur, mother and cultural icon.”

The launch forms part of AFFIN’s Axelerate 2028 plan, which includes more personalised banking propositions.

The card will be available from 17 October 2026 at AFFIN’s booth during the Gema Bumantara concert at TM Stadium Nasional Bukit Jalil, followed by selected AFFIN branches from 19 October.

Featured image: Edited by Fintech News Malaysia, based on image by Affin

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The measures were announced during PIDM’s Industry Dialogue with member banks.

The Resolvability Assessment Framework, or RAF, sets clearer expectations for banks and supports more structured engagement on resolution preparedness.

PIDM also signed a cooperation agreement with Payments Network Malaysia Sdn Bhd (PayNet) to help maintain access to critical payment infrastructure if a member institution enters resolution.

Its third initiative, Data Pulse, provides insights into household financial wellbeing, savings and resilience to support policy development and broader financial system resilience.

“These initiatives mark the next phase of PIDM’s resolution readiness efforts under the PIDM Corporate Plan 2026 – 2028. Together, they strengthen member institutions’ resolution resilience by supporting orderly resolution through clearer expectations, stronger collaboration and better data.

This is not only about having the ability to undertake resolution actions, but also the credibility to execute them effectively when needed,”

said Afiza Abdullah, Chief Executive Officer of PIDM.

Deputy Minister of Finance Liew Chin Tong launched Data Pulse during the dialogue.

PIDM also introduced RAF intelligence, or RAFi, an AI-enabled tool designed to help member banks navigate resolvability requirements.

The event included a panel discussion on industry preparations ahead of the RAF’s implementation.

Featured image: Edited by Fintech News Malaysia, based on image by PIDM

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Both offers were previously due to end on 30 September 2026.

Eligible customers can earn up to 4% p.a. on funds held in Save Pockets through a combination of base and bonus interest.

The additional interest is unlocked through qualifying spending and payment activities.

Ryt Card customers can also continue earning unlimited 1.2% cashback on eligible overseas transactions through the end of the year.

The extensions form part of Ryt Bank’s first anniversary activities, which also include new product features and customer rewards.

The digital bank reported in August that it had surpassed 1.5 million customers.

Featured image: Edited by Fintech News Malaysia, based on image by Ryt Bank

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The company disclosed that it had contained the affected system and appointed an independent incident response team to conduct a forensic investigation in a Bursa Malaysia filing.

Based on the assessment received so far, the incident was limited to the identified system and did not affect other environments.

CTOS added that its systems remain secure and operational.

The investigation found that certain data files containing processed consumer information had been accessed.

CTOS did not disclose how many consumers were affected or what type of information was involved.

A portion of its credit reporting services is temporarily unavailable while remediation work continues. Other operations and services remain unaffected.

Based on the information currently available, CTOS does not expect the incident to have a “material financial impact”.

The company has notified the relevant authorities and is reviewing its cybersecurity controls following the independent forensic assessment.

CTOS said it will provide further updates if there are any material developments.

Featured image: Edited by Fintech New Malaysia, based on images by CTOS, and Magnific

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Andrew Jong, Managing Director of Personal Financial Services at Hong Leong Bank, and Atul Singh, Global Head of Distribution at Giesecke+Devrient (G+D), join Vincent Fong to talk through HLB opus, the invitation-only card Hong Leong launched on Visa’s new Infinite Privilege tier.

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Their research found that early engagement, savings discipline and trust in data security were stronger indicators of progress towards financial health than income or demographic factors.

The study analysed pseudonymised transaction data from more than 39,000 GXBank customers in Malaysia over 12 months, alongside insights from three focus groups.

Active customers increased their use of digital banking services during their first two months, with debit card transactions rising 250%.

QR payments increased 119%, peer-to-peer payments 139% and deposits 44%.

“One of the more striking findings is how quickly everyday financial behaviors can shape consumers’ long-term financial trajectory.

Beyond ensuring consumers have access, meaningful impact comes from helping them build confidence and good habits in the first few months. Financial inclusion should be viewed as a journey and not a destination.”

said Joyce Bo, Executive Vice President, Core Payments, Asia Pacific, Mastercard.

Deposit frequency also appeared to matter more than the amount initially deposited.

Active customers made 51% more Retail Payments Platform deposits in their first month than customers whose card activity later lapsed.

The study found little correlation between long-term activity and the size of the initial deposit.

Saving habits linked to stronger progress

Customers who allocated 10% to 20% of their deposits to GXBank’s Savings Pockets were 22% more likely to progress to the Usage stage or beyond.

Those who placed at least 15% of their deposits into Savings Pockets were 31% less likely to fall back to the Access stage.

Declining rewards also appeared to affect engagement. Some 38% of participants who disengaged cited lower savings yields or cashback as a reason for reducing their activity.

Product adoption and security also matter

Customers who adopted multiple complementary products within the same calendar month were four times more likely to reach the Financial Security stage.

However, the report found that introducing too many products in the first month could overwhelm customers and weaken progress.

More sustainable adoption was seen after an initial adjustment period, including after day 45.

Security was another factor. Active GXBank customers adopted Cyber Fraud Protect three times faster, while trust in data security was among the stronger indicators of financial health progression.

“The findings show that when consumers receive the right support early on, small actions can become lasting habits, from making their first digital transaction and starting a savings goal to adopting tools that help protect their finances.

In fact, since the research was done, we have introduced new products and partnerships to support our customers wherever they are in their financial journey,”

said Kaushik Chowdhury, Chief Executive Officer, GXBank.

The research comes as 89% of Malaysians have a financial account, but use of some formal financial services remains lower.

Only 52.5% have saved money at a bank or similar financial institution, while 15% have borrowed from one.

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