The Monetary Authority of Singapore (MAS) emphasized that its greatest concern is the rising number of cases where customers’ accounts are being quickly depleted without their knowledge.
Financial institutions in Singapore will soon be required to implement real-time fraud detection systems to prevent unauthorized transactions linked to phishing scams, according to new guidelines set to take effect on December 16.
The move is part of the upcoming Shared Responsibility Framework (SRF), which aims to enhance customer protection and reduce financial losses from scams.
Under the new regulations, financial institutions must quickly identify and block any transactions that appear to be part of phishing scams, particularly those where a customer’s account is being rapidly drained.
In such cases, institutions will either need to block the transaction until they can verify it with the customer, or hold the transaction for at least 24 hours while notifying the customer.
The recommendation to implement enhanced fraud surveillance comes after a two-month public consultation that concluded in December 2023.
Protection against sophisticated scams
The Monetary Authority of Singapore (MAS) emphasized that its greatest concern is the rising number of cases where customers’ accounts are being quickly depleted without their knowledge.
The SRF is part of a broader effort by MAS to strengthen cybersecurity measures and protect consumers from increasingly sophisticated scams targeting the financial sector.
Abhishek Kumar Singh, Head of Security Engineering, Singapore, Check Point Software Technologies said: “By enforcing unified protocols, the Shared Responsibility Framework (SRF) enables that stakeholders—from financial institutions and payment processors to regulatory bodies—to operate under a cohesive fraud prevention strategy.”
“This strategy includes data-sharing practices, structured reporting requirements, and swift response mechanisms, all engineered to close gaps that fraudsters exploit, while limiting disruption for legitimate users.”
Highly targeted sector
According to Check Point’s Intelligence Report, the banking/ financial sector currently ranks as the second most targeted industry in Singapore, facing an average of 1,827 weekly attacks over the last six months.
With the financial sector highly targeted, such standards in fraud detection and response are increasingly crucial.
On the technical side, implementing real-time fraud detection involves integrating machine learning algorithms and rule-based systems to monitor transaction patterns and identify anomalies in real-time.
When a suspicious transaction is flagged, the system can automatically trigger a series of defensive measures. For instance, it might place the transaction on hold pending further verification, or immediately notify the customer through secure channels to confirm authenticity. Should the customer not respond within a specified period (e.g. 24 hours), the transaction remains suspended to prevent unauthorized losses.
This proactive, layered approach underscores the essential shift in cyber security: it’s not just about detecting threats, but orchestrating a systemic response that protects assets and reduces the operational footprint of fraud, especially as attacks on high-stakes industries continue to rise.
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