Singapore Banks Enhance Scam Defenses with 24-Hour Cooling Period
Major retail banks in Singapore are implementing enhanced fraud surveillance on all digital transactions starting October 15th to better protect customers from scams. This initiative introduces a 24-hour cooling period or immediate rejection for transactions that could indicate fraudulent activity.
New Safeguards for Digital Transactions
According to the Association of Banks in Singapore (ABS), the new measures will be activated when a digital transaction, combined with withdrawals over the past 24 hours, results in more than half of an account's balance being transferred out. This is designed to prevent rapid depletion of funds in scam situations. The participating banks include: DBS, OCBC, UOB, Citibank, HSBC, Maybank, and Standard Chartered.
The safeguards apply to all digital banking transactions completed through bank apps and internet banking. Non-digital banking transactions, such as cash withdrawals at bank branches and ATMs, will not be affected.
Impact on Customers and Transactions
Customers with current and savings accounts, including joint accounts, holding balances of at least S$50,000 will be protected under these new rules. The 24-hour cooling period aims to provide scam victims with a "cognitive break," allowing them time to cancel the transaction if they realize they have been scammed.
“Customers may experience delays in digital payments and transfers, including for legitimate transactions, as banks step up their checks to protect customers,” the ABS stated.
Customers are advised to plan time-sensitive banking transactions in advance to avoid potential fees or charges resulting from transaction delays. If a transaction is held or rejected, customers will be immediately notified through their mobile banking app or internet banking platform with instructions on how to proceed.
Exemptions and Verification Process
Certain digital banking transactions are exempt from the safeguard to minimize disruptions to legitimate transfers. These include recurring standing instructions, recurring GIRO payments, and bill payments to organizations classified as "billing organizations" by the banks.
In exceptional circumstances, where customers urgently need transactions to be processed during the cooling period, they can verify the transaction with their bank. This can be done through their bank's branches, ATMs, or contact center, depending on the options offered by their bank. Legitimate transactions that are initially rejected can be re-initiated after verification.
Background on Scam Statistics in Singapore
While scam cases in Singapore declined by 26% in the first half of 2025, with losses falling by 12.6% to $456.4 million, they remain a significant concern. Security measures implemented by major retail banks have collectively averted scam losses of $78 million in the first seven months of this year.
“The measures announced today will help to protect phishing scam victims and stop fraudulent withdrawals before it is too late,” said ABS director Ong-Ang Ai Boon. “This societal safeguard may result in some friction, and we seek customers’ patience and understanding.”