that affected hundreds of OCBC customers highlighted the trade-off between convenience and banking security, with bank customers at risk of bearing the entire financial cost of such modern day bank robberies, experts said.
In a circular to financial institutions last August, the Monetary Authority of Singapore said consumers should not have to bear full financial losses of any fraudulent transactions unless they had been"grossly negligent". Banks and financial institutions should also investigate the scam or fraud in a fair and reasonable manner.
The Financial Industry Disputes Resolution Centre , an independent company which mediates disputes between consumers and financial institutions, said in response to queries that"unauthorised transactions, frauds and scams" was the most popular category of claims made against banks and finance companies in the 2021 financial year, with 42 per cent of all complaints falling under this heading. This is compared with the 29.4 per cent of all complaints Fidrec received in 2020.
While online banking solutions have made it more accessible and convenient for people to pay their bills, transfer money and check their transaction records, it has also created new vulnerabilities, which sophisticated cybercriminals are quick to exploit, said Ms Joanne Wong, vice president of international markets for American security intelligence firm LogRhythm.
Ms Wong said:"After all, phishing attacks and SMS spoofs are just individual parts of a much bigger threat-scape, with recent data breaches and the rise of ransomware pointing towards the need for organisations to mature their cybersecurity strategies as a whole."These attacks work precisely because they are carefully designed to manipulate emotions and take advantage of victims’ trust and human nature.
"These attacks work precisely because they are carefully designed to manipulate emotions and take advantage of victims’ trust and human nature," said Mr Shikiar.
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