Enhanced Security Features Aim to Protect Consumers
SINGAPORE: The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) announced on Thursday (June 2) the introduction of an emergency self-service “kill switch” to combat digital banking scams. This new feature is part of a broader set of anti-scam measures that will be progressively rolled out by banks, with full implementation expected by the end of October. These measures build on those previously announced on January 19.
The “kill switch” will enable customers to quickly suspend their accounts if they suspect any compromise, according to MAS and ABS in a media release. A similar feature has already been available to OCBC Bank customers since February, following a series of phishing scams that resulted in a loss of S$13.7 million.
Additional measures include requiring extra confirmation for significant account changes and high-risk transactions, as well as setting a default transaction limit of S$5,000 or lower for online fund transfers. To facilitate swift account freezing and fund recovery, banks will co-locate staff at the Singapore Police Force (SPF) Anti-Scam Centre and enhance their fraud surveillance systems to address a wider range of scam scenarios.
Customers are advised to use mobile banking apps instead of web browsers to minimize the risk of visiting fraudulent sites. Banks will enhance the functionality of their apps and support customers in transitioning to increased app usage.
ANTI-FRAUD COMMITTEE To ensure ongoing investment in anti-scam initiatives, a standing committee on fraud will be established, comprising the seven domestic systemically important banks. This committee will build on the work of the Anti-Scam Taskforce formed in 2020, reporting directly to the ABS council and spearheading industry anti-scam efforts. The anti-scam work will be organized into five key areas: customer education, authentication, fraud surveillance, customer handling and recovery, and equitable loss sharing.
The seven banks involved are DBS Bank, OCBC, UOB, Citibank, Maybank, Standard Chartered Bank, and HSBC.
MAS and ABS emphasized the importance of customer awareness regarding online banking safety as scam tactics evolve. Customers should stay updated on scam advisories, refer to official sources for hotline numbers and website addresses, enable in-app notifications for their banking apps, and never disclose their internet banking credentials or passwords.
“While the enhanced anti-scam measures may extend the time taken for certain online banking transactions, these steps are essential for providing a higher level of security and protection for customers’ funds,” stated MAS and ABS.
They also noted that combating scams requires a collaborative approach, with all stakeholders contributing to the solution. A draft framework aimed at ensuring equitable loss sharing between consumers and financial institutions will soon undergo public consultation as part of revised E-Payments User Protection Guidelines, which will also address the responsibilities of other key parties in the ecosystem.
Ho Hern Shin, MAS Deputy Managing Director for Financial Supervision, added: “MAS will continue to collaborate with other government agencies and financial institutions to enhance the resilience of Singapore’s financial system against scams.”
