The Monetary Authority of Singapore (MAS) has announced that it is working to devise a framework to ensure equitable sharing of scam-related losses.
Since July 2021, Singapore’s Payments Council has been working to develop a framework to guide how losses incurred from scams are to be shared between financial institutions and customers.
The Payments Council, chaired by MAS, has laid out responsibilities for all parties involved and asked them to be ‘vigilant and to take precautions against scams.’
As per the framework, financial institutions are expected to protect their customers, whereas customers are expected to take precautions such as not clicking on links in suspicious SMSes and emails.
The proportion of loss for each party will depend on whether and how the party has been irresponsible, MAS said adding that it expects financial institutions to bear an appropriate proportion of losses.
“MAS aims to publish the framework for public consultation within the next three months. Other than the sharing of losses, the consultation will also cover the responsibilities of other key parties in the ecosystem,” the regulator said.
The move comes in the backdrop of Oversea-Chinese Banking Corp (OCBC) failing to prevent a phishing scam that resulted in losses of at least $6.31m.
MAS also informed that banks in Singapore have substantially implemented the additional measures to strengthen digital banking security.