KUALA LUMPUR: As millions of Malaysian ATM and credit card users are being advised to switch to PayWave-enabled cards, the union representing bank employees has questioned the vulnerability of the PayWave system to data theft.
According to the National Union of Bank Employees (NUBE), there are devices that can read the information stored magnetically in the new cards.
NUBE assistant secretary-general A Karuna said the authorities and banks, especially Bank Negara Malaysia (BNM), had yet to guarantee the PayWave system’s security.
“Other people can steal information,” he told FMT, pointing to a YouTube video detailing how information could be stolen from PayWave cards.
FMT has contacted BNM for a response on the matter, following the central bank’s directive for the switch.
BNM previously gave ATM, debit and credit card users up to the end of December to switch to PayWave-enabled cards, with PIN numbers replacing signatures for verification.
The local banking industry is believed to have invested about RM1.1 billion over a six-year period until 2020 into supporting the payment card infrastructure upgrade, including equipping payment counters at shopping centres with PayWave terminals.