Easement of Anti-Scam Measures by Banks in "Whitelist" and/or Considerable Safe Situations

Ms Sylvia Lim asked the Prime Minister and Minister for Finance whether the Monetary Authority of Singapore will work with banks to recalibrate anti-scam measures so that friction in transactions is reduced in prescribed "whitelist" situations, for example, when account holders are making transfers to themselves or to Government agencies.

The Monetary Authority of Singapore (MAS) has worked with banks on additional safeguards to protect account holders against scams that result in large sums being lost from their bank accounts. A recent measure applies to bank accounts1 with at least $50,000 balance that are being rapidly drained of funds. Banks will delay the processing of further transfers to allow consumers time to re-consider if the transaction is indeed legitimate.

We are mindful not to unduly impede legitimate transactions, and there are whitelisted transactions that are not subject to this measure. Examples include: (i) Recurring standing instructions; (ii) Recurring GIRO/eGIRO payments; and (iii) Bill payments to organisations, including Government agencies, that are classified as billing organisations by the bank. Currently, a bank does not have information to determine whether the recipient’s bank account held with another bank is owned by the same customer.

MAS and banks are closely monitoring the implementation of the new measure, and will consider other adjustments as necessary to minimise disruptions to legitimate transactions while offering protection against scams. MAS and the banking industry have introduced various measures, including MoneyLock, and the phasing out of SMS One Time Passwords.

To protect consumers against scams, we need to accept some inconvenience in payments transactions. We also encourage consumers to plan ahead if they need to make large value bank transfers.