Banks launch enhanced safeguards to better protect accounts from scammers
29 October 2025
Effective 15 October 2025, major retail banks have implemented enhanced fraud surveillance on all digital transactions to further protect customers from scams. When a bank detects that an account is being quickly emptied of its funds due to a potential scam, some transactions may be held for a 24-hour cooling period before being released, or rejected immediately. The measures were announced by the Association of Banks in Singapore (“ABS”) on 3 October 2025.
With these measures, customers may experience delays in digital payments and transfers, including for legitimate transactions. Customers are advised to plan time-sensitive banking transactions (e.g. for share purchases) in advance to avoid incurring fees and charges due to any delay.
Accounts and transactions protected by the enhanced safeguard
The enhanced safeguards apply to all personal banking accounts, including joint accounts, opened with the retail business at the seven domestic systemically important banks (D-SIBs), provided the account has a balance of S$50,000 or more (“Account”).
The safeguard will kick in if a material threshold is hit, i.e. when a transaction, together with withdrawals over the past 24 hours, results in more than 50% of an Account’s balance being transferred out. The transaction that triggers this threshold, and all subsequent transactions out of the Account, will either be held for 24 hours or rejected.
The safeguard will apply to all digital banking transactions done through bank apps and internet banking. Non-digital banking transactions, including cash withdrawals at bank branches and ATMs, will not be affected.
What customers should do when transactions are held for 24 hours or rejected
When transactions are held or rejected, customers will be informed immediately on their mobile banking app or internet banking platform, with instructions on the next steps to take.
24-hour cooling period
The 24-hour cooling period serves as a cognitive break for scam victims who initiated and authorised the transactions. It provides time for victims to cancel the transaction should they subsequently realise that they have been scammed. Banks will advise their customers on how to cancel transactions, including through mobile or internet banking or the contact centre. Upon cancellation, the transaction will not be processed, and funds will remain in the victim’s account.
Customers need not take any action if the transactions are legitimate. Funds will be automatically released after the cooling period.
In exceptional circumstances where customers urgently need transactions to be processed during the 24-hour cooling period, they will need to verify their transactions with the bank. Customers can do this at their bank’s branches or ATMs, or by calling the contact centre, depending on the options offered by their bank. Banks will advise their customers about their respective options.
Immediate rejections
When a legitimate transaction is rejected, customers can re-initiate the transaction if the transaction is 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.
Exemptions and other measures to minimise disruptions to legitimate transactions
To minimise disruptions to legitimate transactions, certain types of digital banking transactions will be exempted from the safeguards, including:
- recurring standing instructions;
- recurring GIRO/eGIRO payments; and
- bill payments to organisations classified as billing organisations by the bank.
These transactions will not be held for 24 hours, or rejected, even if the material threshold is hit.
More safeguards
Major retail banks will roll out further measures in the coming months. One new initiative is that banks will send in-app push notifications for acknowledgement to customers who are digital token users when making outbound calls to them. This provides assurance to customers that bank calls that they receive are indeed from their banks.
Background
The enhanced fraud surveillance on all digital transactions complement banks’ existing anti-fraud measures, including the fraud surveillance duty earlier implemented as part of the Guidelines on the Shared Responsibility Framework for phishing scams. Apart from situations where an account is quickly emptied due to a potential scam, banks have other fraud detection parameters and may hold or reject transactions based on other risk factors.
Reference materials
The following materials are available on the ABS website www.abs.org.sg: