SINGAPORE – A framework to clarify how losses from scams should be shared between consumers and financial institutions could be made public by the Monetary Authority of Singapore (MAS) within the next three months.
The financial sector regulator said on Friday (February 4) that the proportion of losses each party bears “will depend on whether and how the party has breached its responsibilities.”
MAS will seek public feedback on this framework which also covers “the responsibilities of other key parts of the ecosystem”.
It comes after 790 OCBC customers lost $13.7 million in recent scams where fraudsters impersonated the bank’s name to send fake text messages with phishing links to victims.
MAS is leading a task force, announced in July last year, to look at practices the financial industry can put in place to better protect consumers.
This includes examining how to allocate liability for a fraudulent online transaction.
As part of accountability, MAS said on Friday that “all parties have a responsibility to be vigilant and take precautions against scams.”
For example, financial institutions must have measures in place to protect customer accounts, and detect and respond to suspicious transactions.
Customers should take precautions, such as never giving out personal or banking credentials to anyone. They should never click on links in text messages or emails that appear to be from a bank, and should transact only through the bank’s official website or mobile app.
The authority added that OCBC’s recent goodwill payments to fully cover fraudulent customer losses “were a one-time gesture by the bank in the circumstances, which included the bank’s review of how it did not failed to meet its own expectations for customer service and response”. .
“They don’t set a general precedent for future cases,” the MAS said.