Financial Crime World

Singaporean Authorities Battle Financially Devastating Scams Amidst Surge in Financial Crimes

Singapore, known for its robust financial sector, has been facing a surge in financial crimes since the onset of the coronavirus pandemic.

Latest Developments in Financial Crimes

  • Largest ever money laundering case in 2023, with investigations ongoing and over US$2.2 billion seized.
  • Reported scams reached an all-time high of 46,563, representing a nearly 50% increase since 2016. -Total losses amounted to SGD 651.8 million in 2023, a slight decrease from SGD 660.7 million in 2022.

Common Forms of Financial Scams

There is growing concern over everyday financial crimes, such as:

  • Task scams: Victims asked to perform tasks, like liking social media posts or rating mobile apps, for a commission, eventually requesting they transfer funds into scammer’s accounts.
  • Phishing and investment scams: These scams often cause significant financial losses and damage to public confidence in digital banking and payments.

Government Response and Initiatives

Singapore’s Monetary Authority of Singapore (MAS) identified these financially-enabled scams as the most concerning. In response, Singapore took a multi-pronged approach to counteract these threats:

Mitigating Phishing Scams

  • In October 2023, MAS published a consultation paper assigning duties to both financial institutions and telecommunications firms.
  • The consultation paper detailed damages owed to victims.

Introducing Money Lock Feature

Major retail banks in Singapore, including DBS, OCBC, and UOB, introduced a Money Lock feature for customers:

  • Allows customers to set aside a portion of their banked funds that cannot be transferred digitally.
  • Limits potential losses in the event of digital banking access compromise.

Customer Protection

  • More than 61,000 Money Lock accounts have been set up since the feature’s release, with SGD 5.4 billion set aside in February 2024.
  • Other banks are expected to introduce this feature by mid-2024.

Next Steps for Effective Mitigation

  • Strengthening security standards on mobile operating systems and devices is crucial.
  • Banks must prioritize strengthening anti-malware controls, fraud surveillance, and detection capabilities.