Reviewing Shared Responsibility Framework to Address Banks' Responsibility for Unauthorised Digital Transactions that Occur Within Seconds
Gabriel Lam raised questions regarding the Monetary Authority of Singapore's review of the Shared Responsibility Framework, particularly related to banks' accountability for unauthorized digital transactions and the adequacy of rules for reversing fraudulent transactions. Gan Kim Yong responded that most scams involve authorized transfers initiated by victims due to deception rather than unauthorized transactions. Banks are enhancing fraud detection systems and have protocols for blocking potentially fraudulent transactions, but distinguishing between legitimate transactions and fraud is challenging. The Shared Responsibility Framework requires banks to hold suspicious transactions for 24 hours, balancing user protection with convenience. Banks encourage customers to report fraud promptly, use account safeguards like kill-switches, and adopt protective measures to reduce risks.