Loss-sharing framework for banks, telcos should keep pace with evolving scams, say industry watchers

THE proposal for financial institutions (FIs) and telecommunication providers to share responsibility for phishing scam losses is seen as a good first step, but industry watchers have said the framework will need to evolve as more sophisticated scams emerge.

Their reactions follow Wednesday’s (Oct 25) release of a consultation paper by the Monetary Authority of Singapore (MAS) and the Infocomm Media Development Authority (IMDA). The document lists the duties of FIs and telcos in mitigating the risk of consumers falling prey to phishing scams.

The proposed approach places the responsibility on the banks to bear the full loss first, followed by the telcos.