Additional anti-scam initiatives introduced to safeguard customers
SINGAPORE: The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) announced new measures to combat digital banking scams, including an emergency “kill switch” for all banks, effective by the end of October. This measure is part of a broader package of anti-scam initiatives that build on those introduced earlier this year.
The self-service “kill switch” allows customers to immediately suspend their accounts if they suspect fraudulent activity. A similar feature was already implemented by OCBC Bank in February after phishing scams resulted in the loss of S$13.7 million.
Additional safeguards will be introduced, such as requiring extra verification for major changes to customer accounts or high-risk transactions, and reducing the default transaction limit for online transfers to S$5,000. Banks will also work closely with the Singapore Police Force’s Anti-Scam Centre to facilitate rapid account freezes and fund recovery.
To reduce the risk of customers visiting fraudulent websites, MAS and ABS advise using mobile banking apps instead of web browsers, and banks will continue to improve the functionality of these apps.
Anti-Fraud Committee Established
A new permanent committee, consisting of the seven largest domestic banks, will oversee the industry’s anti-scam efforts. This committee will build on the work of the Anti-Scam Taskforce formed in 2020, driving initiatives across five key areas: customer education, authentication, fraud detection, customer service, and equitable loss sharing.
The seven banks involved are DBS, OCBC, UOB, Citibank, Maybank, Standard Chartered, and HSBC.
MAS and ABS stressed the importance of customer vigilance in combating evolving scam tactics, advising consumers to follow scam alerts, use official contact sources, and avoid sharing online banking details. They also acknowledged that the additional security measures might slow some transactions but emphasised that this is necessary to protect customers’ funds.
Ongoing Industry Collaboration
MAS will continue collaborating with other government agencies and financial institutions to enhance the resilience of Singapore’s banking system against scams. A public consultation will soon be launched to finalise a draft framework for equitable loss sharing between consumers and financial institutions.
