MAS unveils new measures against digital banking scams
Default transaction limit for online fund transfers must be set to S$5,000 or lower.
The Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS), in consultation with the Singapore Police Force, are requiring banks to progressively implement additional measures against digital bank scams.
Banks are required to roll-out additional customer confirmations to process significant changes to customer accounts and other high-risk transactions identified through fraud surveillance.
They must also set a default transaction limit for online funds transfers to S$5,000 or lower, and provide an emergency self-service “kill switch” for customers to suspend their accounts quickly.
MAS is also directing banks to facilitate rapid account freezing and fund recovery operations by co-locating bank staff at the SPF Anti-Scam Centre, as well as enhance fraud surveillance systems to take into account a broader range of scam scenarios.
The measures are expected to come into full effect by 31 October.
The ABS Standing Committee on Fraud, which comprise of seven domestic systemically important banks, have also been announced to take forward the work of the Anti-Scam Taskforce established in 2020. The committee will reportedly work to further drive anti-scam efforts, implement measures to safeguard customers, and reinforce public confidence in the security of digital banking
For customers, MAS strongly encourages customers to use mobile banking apps instead of web browsers.
The new measures were announced a day before the launch of the first of Singapore’s digital-only banks, Green Link Digital Bank; and a week after MAS imposed S$330m in additional capital requirements on OCBC, whose customers were hit with phishing scam late last year.