Singapore banks are rolling out a new security feature on their mobile banking applications to combat malware scams and protect customers from potential cyber threats. The feature, which has sparked some controversy among customers, temporarily disallows access to digital banking services if it detects apps downloaded from unofficial app stores on phones.
The Association of Banks in Singapore (ABS) has clarified that this new feature does not conduct surveillance on users' mobile phones or collect any personal data. Instead, the technology detects higher-risk behaviors characteristic of known malware activities when the banking apps are opened. This move aims to counter the growing threat of malware scams, which have been deemed particularly aggressive and pose a serious risk to consumers.
OCBC customers were among the first to experience this new feature, with some expressing concerns about whether the bank is being "high-handed" or monitoring users' activities on their phones. The bank's Facebook post explained that customers will not be able to log in to its internet banking or mobile app if they do not uninstall apps downloaded outside of official app stores from their phones.
Other Singapore banks, including DBS and United Overseas Bank, are expected to roll out similar security features in the near future. This move has been widely supported by the Monetary Authority of Singapore (MAS), which strongly backs banks' efforts to bolster digital banking security in the wake of malware-related scams.
According to OCBC's head of anti-fraud, Mr Beaver Chua, the new feature is designed to filter out "bad apps" that can make devices susceptible to security vulnerabilities. This includes recent cases of malware scams such as Central Provident Fund accounts being remotely accessed by scammers, resulting in money being withdrawn.
While some legitimate apps have been flagged as risky, OCBC has assured customers that these apps are usually downloaded directly from websites and not app stores. The bank's customer service hotline is available to assist with any issues related to digital banking, and customers can also visit the bank's branches for further assistance.
In implementing new security measures to protect customers, banks aim to strike a balance between security and convenience. As Mrs Ong, ABS director, emphasized, "We seek the understanding of consumers, as scammers are deploying increasingly sophisticated tactics."