Understanding the difference between unauthorised transactions and authorised transactions: What you need to know

Managing money online has never been more convenient, but with that convenience comes greater risk. If you’ve ever had money taken from your account without your knowledge or if you were tricked into sending it yourself, you’ve experienced either an unauthorised or an authorised transaction.

Though both can result in financial loss, they’re treated very differently — especially when it comes to getting your money back.

Let’s break down the key differences and what you can do to protect yourself.

What is an unauthorised transaction?

An unauthorised transaction occurs when money is moved from your account without your knowledge or approval. This includes someone making purchases, transfers, or withdrawals using your details — without you ever consenting to it.

These are usually linked to fraud and can happen due to:

• -Stolen or leaked card information (especially online)

• -Lost devices with saved account or payment details

• -Hacked or compromised accounts

• -Weak or missing security checks (like skipping OTP verification)

Some websites may not securely store your card details or skip basic verification steps, making it easier for fraudsters to access your funds.

What to do:

If you spot a transaction you didn’t make, report it to your bank or eWallet provider immediately. The faster you act, the better your chances of recovering the money.

Many institutions, including TNG eWallet, offer support for unauthorised transaction claims especially when there’s no sign of user negligence. TNG eWallet, for example, allows fraud reports to be submitted within 90 days.

When refunds may not apply:

You may not be eligible for reimbursement if you:

• Downloaded suspicious apps (e.g., .apk files) that secretly harvested your login details

• Shared sensitive information (like PINs, passwords, OTPs, NRIC, or full card numbers)

In such cases, financial institutions may consider it user negligence, even if you didn’t intend for the transaction to happen.

What is an authorised transaction?

An authorised transaction happens when you approve the transfer of money, even if you were tricked into doing it. These cases are typically linked to scams, where deception or emotional manipulation is used to gain your trust.

Scammers often impersonate:

• -Government bodies

• -Banks or eWallet providers

• -Delivery services

• -Loved ones in trouble

They may also create fake websites, urgent messages, and make offers that seem “too good to be true.”

How it’s different:

Even though you were misled, you approved the transaction, which is why financial institutions classify it as authorised and will rarely offer refunds.

That’s why it’s so important to stay vigilant, verify who you’re dealing with, and never share personal or banking information with unverified parties.