Banks up scam surveillance: 24-hour cooling period, rejected transactions when over half of account's balance is moved out

In a move to further protect customers against scams, banks in Singapore are implementing enhanced fraud surveillance on all digital transactions from Oct 15.

A 24-hour cooling period or immediate rejection will be triggered when a transaction, together with withdrawals over the past 24 hours, results in more than half of a bank account’s balance to be transferred out.

In a statement by the Association of Banks in Singapore (ABS) on Friday (Oct 3), seven major banks are participating in this initiative. They are: DBS, OCBC, UOB, Citibank, HSBC, Maybank and Standard Chartered.

Current and savings accounts, including joint accounts, with balances of at least $50,000 will be protected by this new rules, which kick in when banks detect that they are being quickly emptied of its funds due to a potential scam.

The safeguard will apply to all digital banking transactions completed through bank apps and internet banking. Non-digital banking transactions, which includes cash withdrawals at bank branches and ATMs, will not be affected.

"Customers may experience delays in digital payments and transfers, including for legitimate transactions, as banks step up their checks to protect customers," the association said.

"Customers are advised to plan time-sensitive banking transactions (for example, for share purchases) in advance to avoid incurring fees and charges due to any delay."

If a transaction is held or rejected, customers will be informed immediately on their mobile banking app or internet banking platform, with instructions on what to do next. 

The 24-hour cooling period acts as a "cognitive break" for scam victims who initiated and authorised the transactions, said ABS. 

"It provides time for victims to cancel the transaction should they subsequently realise that they have been scammed." 

Banks will then advise customers on how to cancel transactions, including through mobile or internet banking, or contact center. Upon cancellation, the transaction will not be processed.

Customers need not take any action if the transactions are legitimate and funds will be automatically released after the cooling period. 

In exceptional circumstances where customers urgently need transactions to be processed during the cooling period, they will have to verify their transactions with the bank. 

This can be done at their bank’s branches, ATMs or by calling the contact centre, depending on options offered by their bank. 

For legitimate transactions that are rejected, customers can re-initiate them if they are subsequently verified with the bank.

"As banks adopt different ways to engage customers to verify the legitimacy of transactions, they will be advising their customers accordingly," it said.

The association said that certain digital banking transactions are exempt, including recurring standing instructions, recurring GIRO payments and bill payments to organisations which the banks classify as "billing organisations".

Scam cases in Singapore declined by 26 per cent in the first half of 2025, with losses falling by 12.6 per cent to $456.4 million.

Security measures implemented by major retail banks have collectively averted scam losses of $78 million in the first seven months of this year.

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chingshijie@asiaone.com