Parliament
Singapore banks told to phase out SMS OTP as sole factor of authenticating high-risk transactions
The Monetary Authority of Singapore has required banks to phase out SMS OTP as a sole factor to authenticate high-risk transactions,” said Senior Minister Tharman Shanmugaratnam in a recent parliamentary reply
SINGAPORE — In a written reply to oral questions not answered by the end of parliament’s question time on Thursday (6 Jul), Senior Minister Tharman Shanmugaratnam, standing in for the Prime Minister, responded to concerns over fraudulent bank transactions.
The queries were raised by Mr Gerald Giam Yean Song, Workers’ Party Member of Parliament for Aljunied GRC, and Dr Tan Wu Meng, People’s Action Party MP for Jurong GRC.
Mr Giam had asked about the number of fraudulent transactions due to SMS OTP diversions, the timeline set by the Monetary Authority of Singapore (MAS) to phase out SMS OTPs, and the possibility for customers to opt out of using SMS OTPs if they were already using other multi-factor authentication methods.
Responding to Mr Giam’s queries, SM Tharman, also MAS’ Chairman before he stepped down from his political appointments on 7 July, stated, “While our local telco networks were secure and not compromised, the telco operators had since implemented additional security safeguards to mitigate the risk. Hence, the risk of SMS OTPs being diverted has now been largely addressed.”
SM Tharman further explained, “The Monetary Authority of Singapore (MAS) has required banks to phase out SMS OTP as a sole factor to authenticate high-risk transactions. Banks in Singapore have already moved away from sole reliance on SMS OTP for high-risk online banking activities.”
However, according to SM Tharman, MAS does not currently see the need to require banks to provide customers the ability to opt out of SMS OTPs as this would limit the authentication toolkit that the banks have and dilute the effectiveness of multi-layered security for protecting customers.
He also notes that the transition away from sole reliance on SMS OTP for high-risk online banking activities will however not deal with other scam types, such as those related to phishing and malware to steal banking credentials, that has been growing recently.
Meanwhile, Dr Tan, prompted by a police advisory on malware compromising mobile devices, asked whether MAS would consider reviewing previously closed cases of customer disputes involving unauthorized transactions.
In addressing these concerns, the Senior Minister underscored the growing threat of malware, stating that “scammers are exploiting newer technologies” and have “acquired the ability to control customers’ devices using malware.”
SM Tharman urges the public to pay attention to the security permissions requested by applications, install only from official sources, uninstall unknown applications, and regularly update devices and applications.
“MAS expects banks to treat customers fairly in all cases of dispute over unauthorized transactions,” SM Tharman emphasized. “Customers can ask banks to reassess their cases should new information relevant to their disputes surface.”
The police had earlier reported in February that residents in Singapore lost S$16.5 million in 2022, which is a significant decrease from 2021, when S$34.8 million was reported as lost.
Malware scams on the rise in Singapore
Just this June, police have issued a warning to Android users after at least two individuals lost an aggregate sum of S$99,800 from their Central Provident Fund (CPF) savings due to a new kind of malware scam.
Victims reportedly stumbled upon advertisements for groceries, including seafood, on various social media platforms, primarily Facebook.
After reaching out to the businesses through social media or WhatsApp, they were directed to download an Android Package Kit (APK) file to place orders and process payments.
APKs are installation files for Android apps, which can be downloaded from the Internet and third-party app stores, as opposed to the official Google Play Store. These APK files could contain malicious software or “malware”, particularly those designed for phishing.
Unwitting victims, unaware of the hidden malware in the downloaded application, opened their devices to remote access by scammers. This allowed the cybercriminals to pilfer sensitive data such as Singpass passcodes and other stored information on the victims’ devices.
“The scammer might also call the victim to ask for their Singpass passcode, purportedly to create an account on the application,” the police cautioned.
Further exploiting the victims’ trust, scammers directed them to phony bank application login sites to input their banking credentials. Equipped with keylogging capabilities, the malware would record the information and transmit it to the scammers.
These cybercriminals, now possessing stolen Singpass passcodes, accessed victims’ CPF accounts remotely. They withdrew funds through PayNow, which were then deposited into the victims’ bank accounts. Subsequently, the scammers utilized the victims’ banking application to transfer the CPF funds away via PayNow.
Victims only detected the scam when they noticed unauthorized transactions in their bank accounts.
Just yesterday, TOC reported on a case where a preschool teacher had most of her money transferred out of her account without her permission, even after she immediately deleted the suspicious app that she had downloaded online two months ago.
Parliament
Minister Shanmugam rejects request for detailed information on visa-free visitor offences: Cites bilateral considerations
Minister for Home Affairs K Shanmugam rejected Workers’ Party MP He Ting Ru’s request for detailed statistics on visa-free visitors involved in crimes, citing bilateral concerns. He affirmed current screening measures are sufficient, with no plans for an electronic travel authorisation system.
On 10 September 2024, Minister for Home Affairs and Law, Mr K Shanmugam, refused to provide detailed information requested by Workers’ Party Member of Parliament (MP) for Sengkang GRC, Ms He Ting Ru, regarding visa-free visitors involved in criminal offences in Singapore.
Ms He had asked for statistics on how many visa-free visitors had been arrested or identified as persons of interest for criminal activities from 2021 to June 2024, along with a breakdown of offences by type, number, and country of origin.
She also queried the consideration of enhanced screening measures and the possibility of introducing an electronic travel authorisation system similar to those in other jurisdictions.
In his written response, Mr Shanmugam stated that with over 150 countries on the visa-free entry list, it would not be practical or meaningful to publish crime statistics specific to visitors from these nations.
He added that doing so could carry bilateral implications and potentially send the wrong message to bona fide visitors from these countries.
Mr Shanmugam affirmed that Singapore’s Immigration & Checkpoints Authority (ICA) employs a risk-based, multi-layered approach to balance border security with traveller facilitation and assured that the current measures are sufficient. He reiterated that there were no immediate plans to implement an electronic travel authorisation regime, as it would increase inconvenience for visitors.
“We are satisfied with the current measures, and for now, do not see a need for an additional electronic travel authorisation regime. Also, such a regime will make visiting Singapore more inconvenient,” said Mr Shanmugam.
This response followed an oral reply delivered earlier that day by Minister of State (MOS) for Home Affairs, Ms Sun Xueling, who addressed a related question posed by Non-Constituency Member of Parliament (NCMP) Mr Leong Mun Wai from the Progress Singapore Party (PSP).
Mr Leong had expressed concerns about the potential rise in crime following the introduction of a 30-day visa exemption arrangement for Chinese nationals in February 2024. He specifically questioned whether the recent burglaries involving foreign syndicates had any link to this exemption and whether automated lanes at Changi Airport increased the risk of non-bona fide travellers entering the country.
Ms Sun refuted Mr Leong’s concerns, clarifying that there had been no increase in arrests among short-term visitors from China since the visa exemption came into effect.
She noted that the arrest rate of Chinese visitors had, in fact, decreased compared to the previous year. While acknowledging the involvement of some foreign nationals in criminal activity, she highlighted that the visa regime alone cannot eliminate all risks. Instead, ICA employs enhanced technology, such as biometrics and advanced data analytics, to screen travellers.
Ms Sun also emphasised the importance of the tourism sector to Singapore’s economy, generating S$27.2 billion in receipts in 2023 and employing over 71,000 workers. She argued that closing borders to prevent crimes would not be a viable solution, especially given Singapore’s competition with neighbouring countries like Malaysia and Thailand, which are also working to attract Chinese visitors.
Despite further calls from Mr Leong for additional security measures and tougher penalties for cross-border crimes, Ms Sun reassured that the government continually reviews its laws, including the Criminal Procedure Code and Penal Code, to address transnational crimes such as human trafficking, drug trafficking, and online scams.
She affirmed that Singapore remains vigilant in adapting its laws and measures to combat evolving criminal trends.
Parliament
Leong Mun Wai questions why NTUC leaders often come from the ruling party
During the Platform Workers Bill debate on 10 Sept, Mr Leong Mun Wai, NCMP from the Progress Singapore Party, backed WP MP Gerald Giam’s call for an independent NTUC. He expressed concerns about NTUC’s ties to the ruling party, questioning its independence given that its leaders are often from the PAP.
SINGAPORE: Mr Leong Mun Wai, Non-Constituency Member of Parliament (NCMP) from the Progress Singapore Party, voiced support for the Workers’ Party and its MP Gerald Giam’s call for an independent and non-partisan NTUC, separate from the ruling People’s Action Party (PAP).
During a parliamentary debate on the Platform Workers Bill on Tuesday (10 Sept), Mr Leong acknowledged that tripartism is a fundamental aspect of governance that all parties, including opposition ones, seek to foster.
He noted that unions naturally seek political power to effect change but expressed concerns about the extent of NTUC’s relationship with the ruling party.
However he questioned the level of NTUC’s independence from the government.
He pointed out that the NTUC’s secretary-general is often a minister or former minister and that many NTUC leaders come from the ruling party.
“Can you find another trade union in the world where the trade union chief is a minister? Are there any countries? Please let me know if there are,” Mr Leong asked, further noting that few opposition politicians are given appointments in NTUC.
“I think we are entitled to think that the independence of NTUC ought to be better than this.”
Earlier, PAP MP Christopher De Souza criticized MP Gerald Giam for using the term “tether” to describe the NTUC-PAP relationship, emphasizing that the NTUC operates through partnership, alliance, and solidarity rather than subordination.
In response, Mr Giam clarified that when he used the terms “tether” or “untether,” he meant that the NTUC and the PAP should be separate and independent organizations.
He sought to ensure that NTUC does not appear to be biased towards the ruling party.
Mr Giam also raised concerns about NTUC’s structure, particularly questioning why the Platform Associations need a Council of Advisors with the power to dismiss the Executive Council and why these advisors are predominantly PAP members or MPs.
He suggested that this structure indicates a lack of independence for NTUC.
The current NTUC secretary-general is Ng Chee Meng, a former PAP minister who assumed the position in 2018 and continues to hold it despite losing to WP’s new team in GE2020.
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