Forum: Banks’ anti-fraud departments should do a better job and not hold up genuine transfers

I was disappointed that there has been no reply from the Monetary Authority of Singapore (MAS), the Association of Banks in Singapore (ABS), or any financial institution to the letter “Exclude bank customers’ local transfers to own accounts elsewhere from anti-scam action” (Oct 13).

Ever since MAS came out with the framework that financial institutions and telcos are liable for sharing customers’ losses to scammers due to phishing activities, banks have scrambled to protect their bottom lines by indiscriminately withholding genuine bank customers’ legitimate transfer amounts if the sums exceed a certain amount or drain a majority or all of the existing deposits.

The banks’ anti-fraud departments should use sophisticated anti-scam software supported by artificial intelligence to confirm that these customers are really transferring money to their own accounts in other banks for higher interest rates, as pointed out by the letter writer.

Good software can determine whether the payee​’s name matches his bank account number in the other bank.

Also, if customers use the “Favourites” button to transfer money, it confirms that they are transferring money to themselves elsewhere because this button locks in the payee name and the payee bank account number. There is added credibility if this button had been set up some time ago and had been used before.

Sadly, a big local bank refused to implement this simple technique and later held my genuine transfer a second time, warning that there could be a third time.

The police have said customers’ transactions arouse suspicion if large sums are transferred “out of character” – meaning large sums are seldom or rarely transferred.

However, banks do not seem to follow this protocol, as several banks have held up my large fund transfers despite my history of regularly transferring such amounts over the past 20 years or so.

Banks needlessly holding up customers’ genuine fund transfers to their own names elsewhere leads to the loss of thousands of man-hours as frustrated customers call the banks, and may have to wait a long time for service.

Banks’ ​productivity similarly falls as​ ​staff have to verify customers’ authenticity and the reason for their transfers.

I wrote to the MAS and ABS some months ago and received only an acknowledgement from MAS.

MAS should step in to ensure that banks’ anti-fraud departments do a better job.

Zhang BaoGuang