Security News > 2023 > September > Singapore may split liability for phishing losses between banks and victims

Singapore officials announced on Monday that next month they will deliver a consultation paper detailing a split liability scheme that will mean both consumers and banks are on the hook for financial losses flowing from scams.

"There are some views that banks can easily absorb losses arising from individual scam cases. However, full restitution without due consideration of culpability is neither fair nor desirable," he told Parliament on Monday.

7 million from around 800 customers of a single bank by spoofing text messages.

At first, Oversea-Chinese Banking Corporation offered "Goodwill" payments to a paltry 6.4 percent of victims, but after the Monetary Authority of Singapore threatened action, it changed its tune and said it would issue "Full goodwill payouts" to all victims.

Then-minister of finance - now deputy prime minister - Lawrence Wong said in the future, customers and banks would have a shared responsibility for any losses in order to prevent a "Weaken[ed] incentive to be vigilant" on the part of the customer.

"In scam cases, banks must consider if they have fulfilled their obligations, and whether the victim had acted responsibly. Customers who practised good cyber hygiene and were diligent in preventing their login information and from being divulged to third parties, should not have to bear losses," said Tan.

News URL

https://go.theregister.com/feed/www.theregister.com/2023/09/20/singapore_phishing_split_fraud/