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Phishing scams have reduced since the OCBC scandal last year confirms the Monetary Authority of Singapore (MAS) while answering a question from the city-state’s parliament.
According to statistics from the Singapore Police Force, the number of phishing scams involving banks has declined from a high of 839 in December 2021 when OCBC customers were targeted to 113 in May 2022.
The OCBC phishing scams proved a catalyst for Singaporean authorities to address this issue, with the MAS and the country’s parliamentarians having all raised concerns about this issue.
As a consequence, OCBC, one of Singapore’s largest banks, was hit with a capital requirement increase of S$330 ($239m) for its handling of the affair that left as many as 790 customers out of pocket.
“Banks have progressively implemented the anti-scam measures announced in January and June,” said Tharman Shanmugaratnam, a senior minister for the MAS.
Specifically, banks have stopped sending clickable links in emails or SMS to retail customers, and have been closely coordinating with the SPF Anti-Scam Centre to support rapid account freezing and fund recovery operations, he insisted.
Shanmugaratnam was answering a question in response to Desmond Choo, a lawmaker who had asked “whether the ministry has seen a decrease in the prevalence of bank-targeted scams since safeguards such as the removal of clickable links in emails or SMSes sent to retail customers were implemented earlier this year”.
Shanmugaratnam also said that the MAS will be publishing a consultation paper on an equitable framework for sharing of losses arising from scams.
Choo also asked, in the absence of this framework, is there an interim arrangement or understanding with banks when losses occur?
According to Shanmugaratnam, “pending implementation of the framework, MAS continues to expect banks to thoroughly investigate all scam cases and treat their customers fairly”, he said.
“Customers who had practised good cyber hygiene and were diligent in protecting their login information and one-time passwords from being divulged to third parties should not have to bear losses.”
Exposure to crypto
The minister was also asked about Singapore’s exposure to the recent collapse in the value of the TerraUSD stablecoin and Luna token.
Parliamentarian Saktiandi Supaat asked whether there is data on the extent of Singaporeans’ exposure, whether there are further systemic risks to the economy arising out of fundraising efforts to shore up the UST through the Luna Foundation Guard, and what the status is of the MAS’ review and consideration of its overarching regulatory approach towards crypto-assets, including stablecoins.
Shanmugaratnam said the situation illustrates the high risks involved in investments in crypto-assets that the MAS has warned the public about repeatedly.
However, the MAS has said that exposure remains low.
“While data on cryptocurrency holdings among the Singapore public are not available, statistics collected by MAS show that banks in Singapore have insignificant exposures to the cryptocurrency ecosystem.
“MAS is assessing the merits of a regulatory regime tailored to the specific characteristics and risks of stablecoins, such as regulating the reserve requirements and the stability of the peg, and will consult the public in the coming months,” he confirmed.
Singapore has become increasingly active in its approach to crypto. MAS fintech chief Sopnendu Mohanty told the Financial Times recently that the jurisdiction will be “unrelentingly hard” on crypto firms.
According to Shanmugaratnam, “from a developmental perspective, MAS’ aim has been and remains to enable growth of an innovative and responsible digital asset ecosystem”.
He continued that the MAS’ main focus has been on innovations in distributed ledger technologies that can enhance efficiencies in key wholesale market activities such as trade finance, cross-border payments and the capital markets.
“MAS is working closely with the industry on these areas.”
