SINGAPORE: Major retail banks will introduce a new security feature, “money lock,” by mid-2024. Local banks such as DBS, OCBC, and UOB have already implemented this feature to allow customers to safeguard their funds digitally.
The Business Times reports that Mr Alvin Tan, Minister of State for Trade and Industry, announced this development in Parliament on Tuesday, April 2.
According to Mr Tan, most retail banks will soon have access to the money lock option. However, he clarified that the feature will not be mandatory for banking institutions.
Since its launch in November last year, the money lock feature has seen significant uptake. Over 78,000 accounts in Singapore have activated the feature, securing more than S$6.6 billion in savings as of March 2024.
Interestingly, customers aged 50 and above make up 44% of users, while those between 30 and 50 constitute 41%, and the remaining 15% are below 30 years old.
According to Mr Tan, “Local banks will continue to raise awareness and encourage adoption amongst the customer base across all demographic segments.”
The primary aim of the money lock feature is to mitigate potential losses when a customer’s digital access to bank accounts is compromised.
Mr Tan also discussed the government’s intentions to roll out the Shared Responsibility Framework (SRF) for phishing scams later this year. This initiative comes after a public consultation that wrapped up on December 20, 2023.
During the parliamentary session, People’s Action Party (PAP) Member of Parliament Desmond Choo raised a supplementary question regarding other jurisdictions’ strategies in combating scams.
Mr Tan highlighted that authorities study approaches from countries like the UK and Australia. For instance, the UK has seen a 34% rise in Authorised Push Payment fraud cases since implementing its Contingent Reimbursement Model.
Mr Tan continued, stating, “different approaches fit different jurisdictions.”
The minister also shared insights from the public consultation, noting public inquiries about expanding the SRF to cover more scam types and discussions around shared responsibility and payout determination.
Singapore aims to balance protecting consumers without inadvertently encouraging risky behaviour.
Responding to questions about emerging scam types, such as those utilising voice cloning and artificial intelligence, Mr Tan mentioned the SRF’s focus on phishing but acknowledged that the government is well aware of the threat from malware scams.
He said, “As we combat this rapidly evolving scam nature and different typologies, we need to take a suite of approaches towards combating this.”
He also mentioned that the money lock feature and improved public education and awareness will help prevent scams. /TISG
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