Regulators detail scenarios for scam victims and the roles of banks and telcos in reimbursing losses.
Singapore – The Shared Responsibility Framework, proposed by the Monetary Authority of Singapore (MAS) and the Infocomm Media Development Authority (IMDA), outlines the scenarios in which scam victims can expect a payout from banks and telecommunication providers (telcos). The framework assigns specific duties to both sectors, making them liable for payouts if they fail to meet their obligations.
The framework provides clarity on situations where victims would be reimbursed and those where they would bear the full loss. Here are some key scenarios:
Investment Scams: If a victim falls for an investment scam on Facebook and makes bank transfers despite receiving real-time SMS transaction notifications, they will bear the full loss, as the transactions were authorized by the consumer.
Fake Sales Online: A scam involving a fake furniture seller on WhatsApp will not be eligible for payout if the scammer is not based in Singapore or a known foreign brand. In such cases, consumers will have no recourse for a payout.
Bank Disruptions: If a scam happens during a system failure at a bank (resulting in missed notifications or lack of safeguards), the bank will be required to fully reimburse the consumer.
Bank Impersonation: If a victim is scammed through SMS impersonating a bank and the telco fails to block unverified messages, the telco will be responsible for reimbursing the victim.
Malware Scams: A victim who downloads a third-party app allowing a scammer to control their phone will bear the loss, as the scam does not involve a fake digital platform or an impersonated legitimate business.
Transactions Dealt with Individually: If multiple fraudulent transactions occur after a phishing scam, the bank will be responsible for failing to notify the consumer during a system failure, while the telco may be held accountable for unapproved message aggregators.
Victims unsatisfied with the payout can approach authorities or take legal action for further recourse.
