On April 2, 2024, it was announced that major retail banks in Singapore will implement the “money lock” feature by mid-2024, allowing customers to set aside funds that cannot be transferred digitally. Minister of State for Trade and Industry, Alvin Tan, made this statement during a parliamentary session, emphasizing that this option will be available to most retail depositors but will not be mandatory for all banking institutions.

The money lock feature was first launched by DBS, OCBC, and UOB in November 2023 and has since been activated for over 78,000 accounts, with more than S$6.6 billion in savings secured as of March 2024. Notably, 44% of the users are aged 50 and above, while 41% are between 30 and 50 years old, and 15% are under 30. This feature aims to mitigate potential losses in cases where a customer’s digital banking access is compromised.

Tan also shared that local banks are committed to raising awareness and promoting the adoption of the money lock feature across all demographic groups. The government is simultaneously working on implementing a Shared Responsibility Framework (SRF) for phishing scams later this year, following a public consultation that concluded in December 2023.

Responding to inquiries from MP Desmond Choo about global approaches to scam prevention, Tan noted that Singaporean authorities are reviewing strategies used in jurisdictions like the UK and Australia. According to UK Finance’s 2023 half-year fraud update, cases of Authorised Push Payment fraud rose by 34% as of 2022 after the introduction of the Contingent Reimbursement Model.

The SRF aims to promote consumer accountability and reduce moral hazard while ensuring adequate protection against scams. Tan indicated that the framework could be expanded to encompass more types of scams based on public feedback, but emphasized the need for a careful approach to avoid unintended consequences.

Addressing concerns raised by MP Tan Wu Meng about emerging scams, such as those utilizing voice cloning and artificial intelligence, Tan acknowledged the evolving nature of scams and highlighted the importance of a multifaceted strategy to combat these threats. He reassured that the SRF is primarily focused on phishing scams but that the government is aware of the role of malware in increasing scam incidents.

Overall, the introduction of the money lock feature, along with public education and awareness initiatives, is expected to play a significant role in safeguarding customers’ funds from scams.