Banks in Singapore will have to offer a “kill switch” as part of a series of new security measures to guard against a growing number of online scams. Consumers are also encouraged to access their accounts through mobile banking apps, rather than web browsers, to reduce risk.
The latest set of measures will complement those introduced in January this yearright after a while online scam involving OCBC Bank customers resulting in damage of more than S$8.5 million ($6.32 million).
The new measures were announced on Thursday and are expected to come into effect on October 31 this year, according to the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS).
Local banks will gradually roll out the latest round of measures, which will include setting default transaction limits for online money transfers to no more than S$5,000 and requiring customers to additionally confirm for processing.” material changes” to their account. Further confirmations will also be required for high-risk transactions identified through fraud monitoring.
Banks must also send bankers to the Singapore Police Force Anti-Fraud Center, to facilitate “rapid” account freezing and fund recovery operations.
The emergency self-service switch must allow customers to suspend their accounts quickly if they suspect a security breach, MAS said. It added that banks are expected to strengthen their fraud monitoring systems to tackle a wide range of fraud scenarios.
The industry regulator also recommends that consumers use mobile banking apps, rather than web browsers, to access their accounts to reduce the risk of navigating to fraudulent websites.
To drive mobile usage, banks will improve the functionality of their apps and help their customers transition to greater adoption of mobile apps, MAS said. said.
In OCBC scams, scammers manipulate SMS sender ID details to send out messages that appear to be from the bank, urging victims to resolve issues with their bank accounts. They were then redirected to phishing websites and instructed to enter their banking login details, including their username, PIN, and One-Time Password (OTP).
In Thursday’s statement, MAS reminds consumers that they also play a role fraud prevention and must keep up with online banking hygiene procedures as phishing tactics have evolved. These include keeping yourself up to date with scam warnings and advice issued by police and banks, and referencing official sources such as the MAS Financial Institutions Directory and hotline phone numbers. to contact banks;
“The ongoing fight against fraud requires an ecosystem approach, with all stakeholders playing their part in being vigilant and vigilant against scams,” MAS said. draft framework The aim of achieving an equitable loss sharing between consumers and financial institutions is being worked on and will soon be available for public comment as part of the Consumer Protection Guidelines. E-Payments is modified. “
OCBC in February introduced its kill switch, allowing customers to cut off access to all of their accounts if they suspect their personal data has been compromised. When activated, the kill switch freezes all accounts including digital banking, electronic payments, ATM access, and credit cards.
Customers need to call the Singapore bank’s hotline and use the “8” option to activate the breaker or do so through OCBC’s 500 ATM network.
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