Sams are on the rise globally, targeting millions of unsuspecting individuals. Citizens Advice reports that around 40 million adults fell victim to scams in the first quarter of 2023. Singapore, too, has experienced a 69.4% to 24,525 scam cases surge from January to June 2023 compared to the same period in 2022.
In response to address this growing issue, banks such as DBS, OCBC, and UOB have introduced the ‘money lock’ feature. Launched in November 2023, this feature adds an extra layer of protection to mitigate losses in case a customer’s digital access is compromised. Currently, S$3.2 billion is safeguarded across 38,000 accounts, said Deputy Prime Minister Lawrence Wong.
The Association of Banks in Singapore (ABS) is actively involved in combating digital scams through various measures. They will continue to improve on the design of their money-locking features over the coming months.
“While the money lock approach taken by various banks varies, they share a similar objective of protecting customers from scams by adding a layer of safeguard should their digital access to bank accounts be compromised,” she added.
“Banks will continue to iterate and improve on the design of the money lock over the coming months, based on customer feedback.”
Despite the “money lock” feature’s success, Ong-Ang warns that the banking industry must remain prepared as scammers continuously adapt their techniques. Customers, banks, and all stakeholders must contribute to the fight against scams.
“MAS will continue to work with financial institutions to assess additional measures for higher-risk transactions, including those relating to transfers to overseas payees, and access of bank accounts from overseas locations,” said Deputy Prime Minister Lawrence Wong.
“These and other measures will be rolled out if assessed to be effective.”
