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The Monetary Authority of Singapore (MAS) is reviewing the liability framework for card scams, given the rising number of frauds and their impact on consumers and financial institutions.
Finance Minister Wong announced to the parliament yesterday about plans to review and provide clear guidelines on the consequences of scams on consumers and banks.
The Monetary Authority of Singapore (MAS) is set to work closely with financial institutions to revamp the existing framework on fraudulent payment transactions. The main aim of the review is to provide details on the responsibilities and liabilities of banks and consumers in such situations.
Between September 2020 and February 2021, the police received 89 reports on scams that took place through SMS OTPs (One-Time Passwords). Victims reported that they did not carry out the transactions or receive the OTP to enable it, Mr Wong said.
MAS reviewing liability framework for card scams where consumer, financial institution not at fault https://t.co/LwogHNDmCd pic.twitter.com/tKfLqq9ldL
— CNA (@ChannelNewsAsia) July 26, 2021
Mr Wong revealed the rising number of cases when replying to Ms Yeo Wan Ling (Pasir Ris-Punggol GRC), who inquired about the increase in bank-related cyber scams in the past six months.
“While these cases represent less than 0.1 per cent of fraudulent online card transactions reported, and the number of cases has come down since March 2021, it is nevertheless concerning,” Mr Wong said.
He also added that banks are aware of the situation and have adopted a flexible approach to cater to the victims by offering waivers of the disputed amounts. MAS has also advised all banks to stay vigilant towards such frauds.
Senior Minister of State for Communications and Information, Janil Puthucheary, also stated that efforts are also made to raise awareness among residents of various types of scams.
Dr Janil stated, “the ministries and agencies involved will continue to monitor and are concerned about an increasing trend (in) attempted scam calls and spoofed calls using the +65 prefix.”
However, he pointed out the inconvenience this would cause legitimate Singaporean consumers that use roaming services and call home from overseas.
This review makes up a part of a wide-scale anti-fraud plan that includes efforts to curb such frauds, including the expeditious blocking of known numbers used to perpetuate scams or detection of those attempting to spoof the numbers of Government agencies.
Suggested Read: Credit Card Frauds- How Can You Prevent It?