Singapore’s government has clarified that the Shared Responsibility Framework will not apply to credit card fraud cases, citing existing robust protections for consumers.
This clarification came in response to a parliamentary question on the prevalence of credit card fraud in the country.
Data from the Singapore Police Force revealed an average of 790 reported cases annually from 2021 to 2023, with losses amounting to s$2.1 million each year.
Deputy Prime Minister Gan Kim Yong emphasised the comprehensive security measures already in place, including safeguards implemented by global card schemes such as Visa and Mastercard, alongside card issuers like banks.
Over time, these measures have been strengthened to combat fraud effectively.
Security protocols such as the 3-D Secure protocol (3DS) add an authentication layer for online transactions, while banks have implemented real-time transaction monitoring and moved from SMS One-Time Passwords (OTPs) to push notifications via digital banking apps.
Push notifications, he noted, cannot be phished, unlike SMS OTPs, further enhancing consumer protection.
Existing regulations, such as the ABS Code of Practice for Banks, limit consumer liability for unauthorised transactions to S$100, provided cardholders report the issue as soon as reasonably practicable, have not been grossly negligent, and do not authenticate fraudulent 3DS transactions.
The chargeback mechanism under card scheme rules also offers recourse for cardholders to dispute charges and recover funds, particularly in cases where merchants fail to enable 3DS authentication.
While the Shared Responsibility Framework is deemed unsuitable for credit card fraud, the government urged the public to play their part by safeguarding physical cards and card information.
This includes regularly monitoring transactions, and promptly reporting any loss, theft, or suspicious activity to their banks.
These efforts, combined with existing frameworks, aim to minimise risks and enhance consumer confidence.
Featured image credit: Edited from Freepik
