Experts: Even If Hackers Attack Banks, M’sians’ Outstanding Loans Won’t Simply Disappear

Professor Dr Zubaile Abdullah, a senior researcher at the Centre for Cybersecurity and Data Intelligence (CCDI), Universiti Tun Hussein Onn Malaysia (UTHM), said that cyberattacks cannot permanently wipe out customers’ loan records.

He added that while hackers may be able to temporarily delete, modify or encrypt a bank’s operational data, modern banking systems are protected by multiple layers of security, including strict access controls, transaction audit trails, backup systems and data recovery mechanisms.

For illustration purposes only

Zubaile explained that loan records are often stored across several different systems, meaning that even if hackers manage to delete them from a bank’s main database, customers’ debts would not simply disappear.

“Banks can still use backup records, transaction histories, loan agreement documents and other financial records to reconstruct the information,” as quoted by BERNAMA.

However, Zubaile, who is also a professor at UTHM’s Faculty of Computer Science and Information Technology, said the recovery process would depend on the extent of the damage, the condition of the backup data and how effective the bank’s disaster recovery plan is.

He also warned that while some netizens might be joking about wanting hackers to attack banks and wipe out their debts, the consequences of such attacks could be much more serious than they realise.

If the integrity of financial data is compromised, the impact could go beyond loan records and potentially disrupt account balances, payment transactions and banking services for the public.

“Banking data is extremely difficult to destroy”

Meanwhile, Dr Noor Nirwandy Mat Noordin, a Psychological Warfare Expert and Security and Political Analyst at Universiti Teknologi MARA (UiTM), said the chances of hackers successfully wiping out banking data through cyberattacks are extremely low.

He explained that Malaysia’s banking sector is protected by strict IT risk management controls, with financial institutions also classified as entities under the National Critical Information Infrastructure (NCII).

For illustration purposes only

On top of these technological safeguards, Malaysia also has a legal framework to protect financial information, including the Personal Data Protection Act 2010, as well as continuous monitoring by enforcement agencies.

“Banking data is extremely difficult to destroy because it is protected by multiple layers of technology, including encryption software and end-to-end encryption,” he said.

However, he reminded the financial sector not to let its guard down, as cyber threats are constantly evolving and becoming more sophisticated, with attackers always looking for new vulnerabilities to exploit.

What are your thoughts on this? Let us know down in the comments!

Also read: Not Just Data Theft: NACSA Warns Cybercriminals Could Target M’sia’s Water, Electricity & Healthcare Systems