MAS says it will strengthen safeguards against authorised fraudulent payments

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MAS strengthens payment safeguards

Highlights

Banks in Singapore have implemented real-time fraud surveillance, transaction alerts, and self-service kill-switch features to protect consumers against fraudulent card payments.
Monetary Authority of Singapore's parliamentary reply confirms that customers see key transaction details before approving payments and can appeal fraudulent payments even after processing.
MAS will continue reviewing and strengthening safeguards for authorised fraudulent payments, maintaining regulatory pressure on banks as scam risks evolve in Singapore.

Bank controls and policy review

As reported by Monetary Authority of Singapore, citing the reply to a parliamentary question, banks have implemented a range of safeguards to protect consumers against fraudulent card payments, including those made in foreign currency. These measures include real-time fraud surveillance to detect and block suspicious transactions, transaction alerts and notifications, and self-service kill-switch functions on mobile apps alongside fraud hotlines for customers to lock their cards.

The reply also says that when customers are asked to approve card payments through their banking apps, they are shown key transaction details such as the merchant name and transaction amount. If a bank flags a payment as potentially fraudulent, it will block the transaction and notify the customer.

Banks will also assist customers with fraud appeals even when a payment has already been processed. MAS says it will continue working with the industry to review and strengthen safeguards where appropriate.

Implications for Singapore's banking sector

The response addresses questions over whether banks should provide clearer transaction descriptors and real-time protocols to pause pending payments when customers report suspected scams. While the written reply does not announce new mandatory requirements on those points, it indicates that the regulator is continuing to assess protections for authorised fraudulent payments.

That keeps pressure on Singapore's banking sector to maintain visible anti-fraud controls as scam risks evolve. The focus on real-time monitoring, customer alerts and card-locking tools shows that current policy remains centred on faster detection and consumer action while MAS evaluates whether further safeguards are needed.

SEON’s expansion plans in the Philippines highlighted how growing digital payments and tighter anti-scam expectations are driving demand for fraud prevention and risk-management tools across banks, remittance providers, and payments businesses. Our earlier article noted that, through a partnership with Exist Software Labs, the company aims to leverage local market data and relationships to broaden adoption beyond fintech and into more regulated, traditional segments.

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