Debated in Parliament on 4 Oct 2022.
Dr Tan Wu Meng asked the Prime Minister (a) since 2020, how many reports are received by financial institutions or MAS regarding unauthorised PayNow transactions involving consumer banking accounts; (b) what proportion of the cases has the mechanism of unauthorised transaction been established; (d) what is the total amount of the unauthorised fund transfers reported and recovered respectively; (e) what are the respective median amounts per affected consumer; and (f) what is being done to better protect consumers.
According to statistics from the Singapore Police Force (SPF), there were 477 cases of banking-related phishing scams involving PayNow transactions in 2021, with a median loss of $3,400. In the first half of 2022, the cases stood at 133, with a median loss of $1,200. The recovery rate for this category of unauthorised transactions, through PayNow specifically, is not available.
The two rounds of anti-scam measures announced by the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) in January and June this year have strengthened safeguards against unauthorised banking transactions, including when such transactions are effected via PayNow. For instance, the default transaction limit set at $5,000 or lower and the default transaction notification threshold set at $100 or lower apply to PayNow transactions as well. Banks have also been adapting their anti-scam defences in response to new attack patterns, for instance, by temporarily lowering the PayNow limit to ward off attacks that may be directed at PayNow users. MAS continues to work closely with the industry to review and enhance the suite of anti-scam measures.
Consumers need to stay vigilant and remember a few basic rules – one, do not provide your digital banking credentials to anyone under any circumstances; two, do not click on links purportedly sent by banks, as banks will not send you links in SMS or emails; three, use the banks' official mobile applications for your banking needs to minimise the risk of navigating to fraudulent websites.
PAPERCUTS