MAS, ABS roll out additional digital banking security measures to be implemented by Oct 31
Michelle Zhu
MORE measures have been introduced by the Monetary of Singapore (MAS) and Association of Banks in Singapore (ABS) to further safeguard customers from digital banking scams, on top of those already announced on Jan 19, 2022.
These include requiring additional customer confirmations to process significant changes to customer accounts and other high-risk transactions identified through fraud surveillance, as well as a default transaction limit for online funds transfers to S$5,000 or lower.
Under the additional measures, banks are expected to provide an emergency self-service “kill switch” for customers to suspend their accounts quickly if they suspect their bank accounts have been compromised. They should also facilitate rapid account freezing and fund recovery operations by co-locating bank staff at the SPF Anti-Scam Centre.
The new measures are progressively being implemented by banks in consultation with MAS and the Singapore Police Force (SPF). They are slated to take full effect by Oct 31, 2022.
In a joint press statement on Thursday (Jun 2), MAS and ABS said efforts are also ongoing for further enhancements in the area of fraud surveillance systems, where the new measures will require such systems to take into account a broader range of scam scenarios.
“To minimise the risk of navigating to fraudulent websites, bank customers are strongly encouraged to use mobile banking apps, as opposed to web browsers. Banks will continue to enhance the functionality of their banking apps, and assist customers to make the transition towards greater use of these apps,” they added.
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Further, a committee of 7 domestic systemically important banks will be established as the ABS Standing Committee on Fraud to take forward the work of the Anti-Scam Taskforce established in 2020.
Reporting directly to the ABS Council, the committee will formalise ongoing anti-scam work in the industry into 5 key work streams covering the areas of customer education, authentication, fraud surveillance, customer handling and recovery, and equitable loss sharing.
Ho Hern Shin, deputy managing director (financial supervision) at MAS, believes the latest set of additional measures will strengthen customers’ ability to protect themselves against digital banking scams.
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“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,” commented ABS chairman Wee Ee Cheong.
A draft framework aimed at achieving an equitable loss sharing between consumers and financial institutions is being finalised. It will soon be put up for public consultation as part of a revised E-Payments User Protection Guidelines, according to MAS and ABS.
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