Banks Should Not Be Expected to Bear Full Burden of Scam Losses, Says Alvin Tan

, Minister of State at the Ministry of Trade and , shot down the proposal for banks to bear full responsibility for scam losses in his response to the Motion on “Losses from Scams and Fraud: Doing Right by Bank Customers”.

Alvin Tan MAS' Framework on Loss-Sharing for Scam Victims Taking Longer Than Expected

Alvin Tan

Tan argued,

“Full restitution without due consideration of culpability is neither fair nor desirable. He said that doing so could erode vigilance and personal responsibility, and lull users into complacency.”

He said that individual customers thus also have an important responsibility to protect to their accounts, and this includes practising good cyber hygiene and being diligent in preventing their login information and OTPs from being divulged to third parties.

Additionally, the Monetary of Singapore (MAS) has issued guidance for banks to institute clear customer handling and investigation processes and to treat customers fairly in all disputes. MAS also monitors how banks handle such disputes.

In scam cases, banks must consider if they have fulfilled their obligations, and whether the victim had acted responsibly.

Tan added that customers who practised good cyber hygiene and were diligent in preventing their login information and OTPs from being divulged to third parties, should not have to bear losses.

He concluded by saying that the is committed to fighting scams, and is working to implement effective upstream and downstream anti-scam measures, and is also working to educate the about scams.

Tan said that the government believes that it is important to strike a between fairness, accountability, and compassion when it comes to scam losses.

The Singapore government aims to publish a consultation paper for a framework on the sharing of losses in scam cases next month, focusing on phishing scams as a start.

The government is also monitoring other countries, including the UK, which have either implemented or are considering mechanisms to mitigate the burden of scam losses. This will be taken into during the of this framework.

 

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