MAS to Provide Guidance on Splitting Scam-Based Losses
The Monetary Authority of Singapore is developing a framework for «equitable sharing of losses» due to financial scams, in the midst of increasing cybersecurity risks.
The MAS is developing a framework that will provide clarity on how losses from scams will be shared between financial institutions and consumers, according to a statement.
This follows a recent «one-off gesture» of goodwill payouts by OCBC to nearly 800 customers that were victims of phishing incidents that totaled more than $10 million in losses – a move that the city-state’s regulator noted should not be considered as a general precedent for future cases.
Shared Responsibility
The MAS underlined a focus on shared responsibility including robust controls, detection and response to suspicious transactions for financial institutions and standard precautions for customers such as protection of personal logins from phone messages or emails claiming to represent a bank.
How losses will be shared will depend on how each party has fallen short of its own responsibilities.
Within the next three months, MAS aims to publish the framework for public consultation which will also cover the responsibilities of other key parties in the system.
