Maintaining an Anti-Fraud Vigilance

With the increase in online activity, especially during the pandemic, has brought about an emergence of fraudsters targeting victims online. Fraudsters have been quick to tap on the change in lifestyle and the increase in online activity – online shopping, remote working and social media – to capitalise on the vulnerable. These include impersonation scams such as pretending to be from trusted organisations to obtain victim’s personal information or money; investment scams such as receiving a message from a stockbroker asking for personal details for an investment form, thereafter having to transfer money in order to receive profits; or job scams such as posting fake adverts on job websites to target those looking for a job, in turn making money out of them. In Singapore, there is an initiative from the National Crime Prevention Council (“NCPC”) which aims to promote public awareness about crime to propagate the concept of self-help in crime prevention. In order to promote greater awareness to the public, NCPC have initiatives such as setting up posters in public areas around the neighbourhoods and public transports, advertisements shown on the national television, and a website¹ to provide more information on the scams in Singapore.

Notwithstanding, there is still an increase in victims falling prey to fraudulent activities. More specifically in the financial industry, we have observed various types of frauds such as card fraud and authorised push payment (“APP”) fraud. APP fraud is especially attractive to criminals since the advent of real-time payments, where fraudsters deceive individuals to send them a payment under false pretence to a bank account controlled by the fraudster. As payments made using real-time payment is irrevocable, the victims often find it challenging to retrieve back their funds after realising that they have been deceived. As such, it is important for consumers to be vigilant. Always use strong passwords, monitor your accounts diligently and be aware of the social engineering tricks fraudster use. If there is any request for a payment or to move your savings, always question it to the highest level. If in doubt, phone the financial institution (“FI”) directly and check on any changes to payment details. Never rush a payment, as a genuine organisation won't mind waiting.

The rate and sophistication of fraud is prevailing beyond what can be managed by businesses across the globe. While the consequences of breached accounts and compromised data are more devastating than ever on businesses and their customers, the methods by which criminals are attacking are only becoming more creative and complex. 

In Singapore, there are various governmental bodies looking to tackle fraud and financial crime and to set the standards for FIs to abide by. The Monetary Authority of Singapore (“MAS”) conducts investigation and audits to ensure compliance with provisions and regulations under statutes such as the Securities and Futures Act (“SFA”). The Commercial Affairs Department (“CAD”) is a department of the Singapore Police Force (“SPF”) and the principal white-collar crime enforcement agency in Singapore. Since 2015, the MAS and CAD have embarked on a joint investigations arrangement to allow for investigation process to be optimised and streamlined, ensuring that any market misconduct is swiftly detected, investigated and efficiently dealt with. It also allows the agencies to pool their investigative resources and expertise, drawing from MAS’s role as a financial regulator and CAD’s financial crime investigation and intelligence gathering capabilities. Over the years, we have observed strategies and guidance from the governmental bodies for individuals and companies to avoid being a victim of fraud. Most recently, the MAS and Infocomm Media Development Authority (“IMDA”) have announced a consultation for the Shared Responsibility Framework for Phishing Scams, which proposes for sharing responsibility for scam losses amongst FIs, telecommunication operators (Telcos) and consumers for unauthorised transactions arising from phishing scams.

Fraud is an increasing threat to today’s economic climate. Fighting fraud is a collective effort. The regulatory authorities in Singapore are taking the necessary steps to ensure that financial crime is being curtailed. iFAST is working closely with the regulators, as well as to do our part to protect the Company by having a strong framework to detect and deter fraud and financial crime activities. The public should also be self-aware of the different types of fraud, and to stay vigilant and safeguard your information and accounts².