How to avoid bank scams in Singapore using a secure savings account

How does the recent spate of bank scams in Singapore affect you? What can you do about it? Find out in the article below.

On Feb 20, 2022, the Singapore Police Force made an announcement They had arrested 13 people suspected to have been involved in a recent series of bank phishing scams. These scams had ensnared nearly 800 OCBC Bank users and inflicted on them a total of $13.7 million in losses.

In this article, we will explore how your choice of bank account in Singapore , as well as some measures you can take, can help you to avoid falling prey to such scams and losing your money.

Why are bank scams on the rise in Singapore?

As Singapore moves towards a “cashless society”, more and more monetary transactions are going online. Some transactions, which in the past could only be done at a physical bank location, can now be done from anywhere through an Internet-connected device.

The increased reliance on digital services means those unfamiliar with the new technology (and even some of those who are) are more vulnerable to online scams.

For example, in the recent OCBC phishing scams, users received an SMS that looked similar to ones that the bank had sent previously - however, the link in the SMS did not lead to the bank’s official website. The scam victims were unable to tell the real and fraudulent links apart, although a keener eye would have been able to.

While advances in technology have made bank transactions much more convenient, they have also assisted scammers. For example, in a few recent cases, scammers used Google Ads to direct Maybank users to a fraudulent customer service hotline. Scammers have also sent SMS messages in the same SMS thread that is used by a bank to send legitimate messages. Online banking scams have become more sophisticated and present an increased threat to banks and their customers.

How do I know if I’m being scammed online?

While it might often be hard to tell if you’re being entrapped by an online banking scam, there are some signs that can help you identify them. If you are unsure whether you are facing a scam, you can call the hotline on your bank’s official website to verify the authenticity of the message or email you received.

SMS contains a suspicious link

Many online banking scams involve a victim receiving an SMS, then clicking a link in it which takes them to the phishing site. These links often appear to be sent by a bank. It is advisable not to click on links in these messages, especially “shortened” links, such as bit.ly links.

The best and safest option is to access your account through your bank’s official banking or payment app, or to go directly to the site through your device’s internet browser. You can then carry out your transactions in the app. For example, DBS has a digibank mobile app and a Paylah mobile payment app.

SMS contains a request for credit card details, account details or One Time Password (OTP)

If you receive a message asking you to divulge your credit card or account details or a One-Time Password (OTP), it’s most likely a scam. Common reasons that the scammers provide are that they need these details to verify or unlock your account, or that you have won a prize and you need to submit your details to redeem it.

For example, in the Maybank Google Ads banking scam, the scammers convinced victims that their accounts were frozen as part of a police anti-scam initiative. To unfreeze their accounts, the victims were told that hey had to transfer money to a new account. This resulted in the victims losing their money.

Website that you are directed to has a suspicious domain name/URL

Before entering your details on a bank’s webpage or making any transactions, verify that you are on the bank’s official website. You can do so by checking the URL bar for the website’s domain name. Phishing sites tend to have URLs that are unrelated to the bank or that are a variation of the bank’s name.

For example, a fake DBS Rewards site was found to be using the URL [word].ursreward.com. The legitimate DBS site is dbs.com.sg.

SMS, or website that you are directed to, contains typographical or design errors

If you receive an SMS purportedly from a bank, and it contains typographical errors, it is most likely a scam. The same principle applies to websites that you are directed to.

How can a secure savings bank account protect you?

In light of the recent spate of banking scams in Singapore, banks in Singapore have been implementing measures to protect customers. These measures are aimed at making it more difficult for scammers to obtain the personal details of users, as well as buying time for breaches to be resolved. Some of the measures that banks in Singapore have agreed to implement are:

Introducing a delay of minimally 12 hours before you can activate a digital soft token for your account Removing clickable links in SMS messages and emails sent to retail consumers.

Having specialised customer service teams on hand to swiftly respond to scam incident reports. Reinforcing their anti-scam education outreach. Implementing a cooling-off period before allowing major changes to an account, such as changes to the user’s contact details

To further curb the banking scams, the banks are also considering new measures like biometric authentication and empowering customers to freeze their accounts without contacting their bank.

This will further help to protect bank users from online scams.

What are the best secure savings bank accounts?

With the measures implemented in response to the recent scam cases, bank savings accounts in Singapore are now more secure. Here are some of the best high interest savings accounts and saving plans in Singapore you might want to consider.

OCBC 360 Account: Competitive Interest for Incremental Savers

Promo: Get up to S$50 cash rebate for new OCBC debit card holder

Consider this if You're a consistent saver with a stable budget

• Min. Age Requirement
  • 18

• Min. Initial Deposit
  • $1,000

• Min. Balance Requirement
  • $3,000

• New OCBC Pay Anyone can get an additional $10 rebate. Promotion valid for individuals who sign up between Oct 1, 2021 & Jan 31, 2022.

Standard Chartered Bonus$aver Account: Highest Effective Interest Rate

Promo: Qualifying customers can get Apple Airpods Gen 3 + Apple AirTag bundle ($314) or $300 cash

Consider this if You're a high-earner open to a banking relationship with Standard Chartered

• Min. Age Requirement
  • 18

• Min. Initial Deposit
  • $0

• Min. Balance Requirement
  • $3,000

• Applicable to New-to-Product customers (i.e. must not have had a previous Bonus$aver Account and/or Bonus$aver Credit Card account suspended, cancelled or terminated in the last 12 months)
• Promotion period: Feb 8 - March 1, 2022

Market-Leading Effective Interest Rate: DBS Multiplier Account

Consider this if You're a high-earning DBS loyalist with financial savvy

• Min. Age Requirement
  • 18

• Min. Initial Deposit
  • $0

• Min. Balance Requirement
  • $3,000

Conclusion

It is not enough to rely solely on the bank’s anti-scam measures to avoid bank scams in Singapore. Bank users must also practice discretion and remain alert to avoid falling for them.

This article was first published in ValueChampion.