Framework for ‘equitable’ sharing of scam losses taking longer than expected: MAS
THE process of developing a framework for equitable sharing of losses affecting scam victims has been taking longer than expected, the Monetary Authority of Singapore (MAS) said in an update on Monday (Jul 18).
This is “in view of the complexity of the issues and the importance of ensuring that the loss sharing and accountability approach incentivises all key parties in the ecosystem to be vigilant against scams”, according to Singapore’s central bank.
MAS in its latest update said it will now publish the draft framework for public consultation “in the coming months”.
“MAS is keenly aware of the importance of this framework and will publish the consultation paper as soon as possible,” it added.
MAS previously aimed to publish the framework for public consultation 3 months from February 2022 when the proposed framework was first announced, after nearly 800 OCBC customers lost a combined S$13.7 million to scammers impersonating the bank while using old short message service (SMS) technology.
While OCBC made goodwill payouts to fully cover its customer losses, the central bank and financial regulator said this was a “one-off gesture” that does not set a general precedent for future cases.
Under MAS’s proposed framework, financial institutions will be responsible for protecting their customers through, for example, controls to safeguard customer accounts — although consumers will also have to take necessary precautions, including not giving away personal or banking credentials to others.
MAS in its February announcement said the proportion of losses borne by each party will depend on whether, and how, the party has fallen short of its responsibilities.
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