Effectiveness of Existing MAS' Requirements on Banks to Protect Customers from Scams
Ministry of FinanceSpeakers
Summary
This question concerns the effectiveness of Monetary Authority of Singapore (MAS) requirements for banks to protect consumers from scams and whether stronger safeguards will be introduced for credit card issuers. Member of Parliament Melvin Yong Yik Chye raised these points, and Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong highlighted measures such as Money Lock accounts and the discontinuation of SMS One-Time Passwords for high-risk activities. Deputy Prime Minister Gan Kim Yong also noted that additional safeguards, including cooling periods and in-app call verification, will be launched this year to further protect account holders. While scam cases and losses dropped by 26% and 13% respectively in the first half of 2025, the Minister emphasized that fraud surveillance and transaction alerts must remain a priority. MAS and financial institutions will continue to review their responses to the evolving scam landscape to ensure robust and adaptive consumer protection.
Transcript
32 Mr Melvin Yong Yik Chye asked the Prime Minister and Minister for Finance (a) what has been the effectiveness of existing requirements imposed by the Monetary Authority of Singapore (MAS) on banks to protect consumers from scams; and (b) whether the MAS has plans to introduce stronger safeguards including with respect to credit card issuers.
Mr Gan Kim Yong (for the Prime Minister): It takes whole-of-Government and society to combat scams. The Government has worked with various stakeholders to put in place a suite of measures to address the scourge of scams.
As part of this collective effort, the Monetary Authority of Singapore (MAS) and banks have been working together to continuously enhance security measures to better protect customers from scams. For example, we have introduced Money Lock accounts and depositors receive regular reminders by banks to set up these accounts. We are progressively discontinuing SMS One-Time Passwords (OTPs) in higher-risk banking activities and transactions, including for the provisioning of credit cards to mobile wallets, because SMS OTPs are more readily obtained and abused by scammers. We have also stepped up fraud surveillance and transaction alerts to account holders, so if there are unauthorised transactions on credit cards, consumers can and must do their part by informing the card issuing bank quickly so that further transactions can be stopped.
Banks will also introduce additional safeguards this year, such as additional cooling periods for higher-risk activities and in-app notifications to help customers verify that an incoming call is indeed from the bank.
While the Mid-Year Scam and Cybercrime Brief 2025 reported that both scam cases and losses decreased by 26% and 13% respectively in the first half of 2025 compared to the same period in 2024, there is no room for complacency. All parties must remain vigilant as scammers will find new ways to target victims. MAS and financial institutions will continue to review and respond to the evolving scam landscape.