Scams Resulting from Integration of Cross-border E-payment Services
Ministry of Home AffairsSpeakers
Summary
This question concerns the potential for scams following the April 2021 integration of Singapore’s PayNow and Thailand’s PromptPay systems. MP Melvin Yong Yik Chye inquired about reported scam cases and the protective measures implemented to safeguard vulnerable victims. Minister for Home Affairs K Shanmugam reported no domestic cases as of September 2021 but noted one overseas e-commerce scam. Key safeguards include the use of banking credentials, customizable transfer limits, and a system-imposed daily cap of S$1,000. Minister for Home Affairs K Shanmugam also emphasized recipient identity verification and urged users to verify all transactions carefully.
Transcript
20 Mr Melvin Yong Yik Chye asked the Minister for Home Affairs (a) since the integration of Singapore’s PayNow and Thailand’s PromptPay in April 2021, whether there have been any scams perpetrated which made use of this real-time cross-border payment system to transmit money; and (b) what safeguards are there to prevent vulnerable victims from falling prey to such scams.
Mr K Shanmugam: The integration between Singapore’s PayNow and Thailand’s PromptPay started in April 2021.
Within Singapore, as of September 2021, there have been no reported cases of scams perpetrated through this integration. However, MHA is aware of at least one case taking place outside Singapore, where an e-commerce scam used the PayNow-PromptPay integration to have the money transferred to the scammer.
The same safeguards imposed for domestic PayNow transfers apply to cross-border transfers made via the PayNow-PromptPay linkage. These include the use of online banking credentials to access PayNow-PromptPay services, and customisable limits on daily transfer amounts. In addition, there is a system-imposed daily cap of S$1,000. Users are also able to check the identity of the recipient before making the transfer, after keying in the mobile phone number of the recipient.
As scammers based overseas may try to exploit advancements in cross-border integration of banking services to get their victims to directly transfer monies overseas, we urge users to practise healthy skepticism in verifying the authenticity of the transactions, make full use of the safeguards available, as well as to pause, check and confirm before effecting the transfer.