Singapore’s main banks will robotically pause or block digital transfers that transfer greater than half of an account’s stability inside a day, introducing new safeguards to stop scammers from emptying high-value accounts.
The measure, taking impact on 15 October, applies to present and financial savings accounts, together with joint accounts, with balances of at the least S$50,000.
It kinds a part of enhanced fraud surveillance by the Home Systemically Necessary Banks (D-SIBs), which embody DBS, OCBC, UOB, Citibank, HSBC, Maybank and Normal Chartered.
When banks detect that an account is being quickly drained resulting from a possible rip-off, transactions could also be held for a 24-hour cooling interval or rejected instantly.
The safeguard applies to all digital banking transactions made by cell apps and web banking, whereas department and ATM withdrawals stay unaffected.
Clients could expertise delays in funds or fund transfers, together with reputable ones, as banks improve monitoring.
They’re suggested to plan time-sensitive transactions, resembling share purchases, prematurely to keep away from potential costs.
How the New Safeguard Will Work
The safeguard will probably be triggered when a transaction, along with withdrawals prior to now 24 hours, strikes greater than half of an account’s stability.
The triggering and subsequent transactions will then be held or rejected.
Throughout the 24-hour maintain, clients will probably be notified by their cell or web banking platforms and may cancel transactions in the event that they realise they’ve been scammed.
Authentic transfers will probably be launched robotically as soon as the interval ends, whereas rejected transactions might be reinitiated after verification with the financial institution.
In pressing circumstances, clients can confirm transactions at branches, ATMs or by contact centres.
Recurring funds resembling standing directions, recurring GIRO or eGIRO funds, and invoice funds to recognised billing organisations will probably be exempt to minimise disruption.
The Affiliation of Banks in Singapore (ABS) stated the improved surveillance enhances present anti-scam controls beneath the Shared Duty Framework, which units out the obligations of banks and telcos in phishing circumstances.
Past the 50 % safeguard, banks might also maintain or reject transactions primarily based on different threat elements.
Rip-off circumstances in Singapore fell by 26 % within the first half of 2025, whereas complete losses dropped 12.6 %.
Regardless of the decline, scams stay a priority. ABS stated main banks’ safety measures helped forestall about S$78 million in potential rip-off losses within the first seven months of the 12 months.
Banks can even roll out in-app push notifications for acknowledgement by digital token customers when banks make outbound calls, assuring clients that the calls are real.
Ong-Ang Ai Boon, Director, The Affiliation of Banks in Singapore, stated,
“Banks are dedicated to setting up sturdy safeguards to guard clients. They’ve been constantly investing in and implementing varied anti-scam measures, resembling fraud surveillance, cognitive breaks and Cash Lock.
Nonetheless, scams stay a scourge on society and the strategies adopted by scammers proceed to develop in sophistication. The measures introduced at the moment will assist to guard phishing rip-off victims and cease fraudulent withdrawals earlier than it’s too late. This societal safeguard could end in some friction, and we search clients’ persistence and understanding.”
Ho Hern Shin, Deputy Managing Director (Monetary Supervision) of the Financial Authority of Singapore (MAS), stated,
“Clients could face delays when conducting bigger worth transactions, however these safeguards have been put in place to guard them from transfers which will subsequently develop into fraudulent.
MAS will proceed to work with banks to minimise the affect on reputable transactions.”
Featured picture: Edited by Fintech Information Singapore, primarily based on picture by diloka107 by way of Freepik
