Liability Issues in Internet Banking In Malaysia

Electronic banking, particularly internet banking has revolutionized the banking industry making transactions faster and more convenient. But security issues present a pressing concern. Even with the best supervisory and security devices losses may occur. This paper examines the regulatory framework in Malaysia as set out by the Central bank, Bank Negara Malaysia and compares it to the United Kingdom and Australia. The focus is on civil liability issues in this area and in this context a landmark case in the United States of America with potential global impact is discussed.