The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS), on June 2, announced that they are taking additional measures to further safeguard customers from digital banking scams.
The measures, which were made in consultation with MAS and the Singapore Police Force (SPF), complement the existing ones announced on Jan 19.
They will be progressively implemented by banks and will be in full effect by Oct 31.
The new measures include additional customer confirmations to process “significant changes” to customer accounts and other high-risk transactions identified through fraud surveillance.
Banks will also now set the default transaction limit for online fund transfers to a sum of $5,000 or lower.
There will be an emergency self-service “kill switch” for customers to suspend their accounts quickly if they suspect that their accounts have been compromised.
See also: MAS and ABS introduce added measures to fortify security of digital banking
Also included in the additional measures: bank staff will be located at the SPF Anti-Scam Centre to facilitate rapid account freezing and fund recovery operations.
Finally, fraud surveillance systems will be enhanced to take into account a broader range of scam scenarios.
In their joint statement, MAS and ABS have also recommended bank customers use their mobile banking apps instead of web browsers to minimise the risk of navigating to fraudulent websites.
See also: OCBC Bank rolls out emergency 'kill switch' that allows customers to freeze all accounts if scammed
“Banks will continue to enhance the functionality of their banking apps, and assist customers to make the transition towards greater use of these apps,” reads the statement.
To ensure sustained investment in the industry’s anti-scam initiatives, an ABS Standing Committee on Fraud, comprising the seven domestic systemically important banks, will take forward the work of the Anti-Scam Taskforce established in 2020.
The seven banks are: DBS Bank, Oversea-Chinese Banking Corporation (OCBC), United Overseas Bank (UOB), Citibank, Malayan Banking Berhad (Maybank), Standard Chartered Bank and The Hongkong and Shanghai Banking Corporation (HSBC).
The committee will report directly to the ABS council and will drive the industry’s anti-scam efforts, implement robust measures to safeguard customers, and reinforce public confidence in the security of digital banking.
Under the committee, the on-going anti-scam work will be formalised into the five key workstreams covering: customer education; authentication; fraud surveillance; customer handling and recovery; and equitable loss sharing.
The committee will also work along with member banks to review and enhance anti-scam measures for effectiveness and relevance amid the evolving scam landscape.
Wee Ee Cheong, chairman of ABS, says, “As an industry, we are constantly reviewing and putting in place sensible and secure measures to safeguard our customers from scams while allowing them to bank with ease. Combating scams, whether digital or otherwise, requires the effort and cooperation of everyone – banks, ecosystem players and also customers. Public awareness and staying vigilant are key. We are committed to work together with all stakeholders to uphold the trust and confidence of digital banking.”
Ho Hern Shin, deputy managing director (financial supervision) at MAS, adds, “The fight against scams requires vigilance across the ecosystem. This further set of measures will strengthen customers’ ability to protect themselves against digital banking scams. MAS will continue to work with other government agencies and financial institutions to strengthen our financial system’s resilience against scams.”
