Forum: Do more to help victims of credit card fraud

I am writing to share my recent experience with a credit card fraud case and to raise broader concerns about consumer protection in such situations.

Recently, my wife discovered a fraudulent transaction of more than US$3,000 (S$3,800) on her credit card. The transaction occurred at midnight, and she reported it to the bank promptly the next morning on noticing it. She did not authorise the transaction and did not approve any OTP request related to it.

Despite the timely reporting and the lack of authorisation, the bank rejected the dispute and required us to bear the full amount. There was no clear explanation for the rejection, and there was no meaningful engagement to help us understand how the decision was reached.

This experience raises important questions. If consumers report fraud quickly and have not authorised the transaction, why should they still bear the loss? Are consumers effectively left at the mercy of banks and scammers?

In researching possible recourse, I found that affected consumers are expected to file a police report, obtain a formal rejection letter from the bank, escalate the case to the Financial Industry Disputes Resolution Centre, possibly report it to the Monetary Authority of Singapore, and even consider the Small Claims Tribunal.

While these channels exist, the process is lengthy, complex and daunting, especially for what may be a straightforward fraud case that was reported promptly.

With scams and fraudulent activities rising rapidly in Singapore, I believe our consumer protection framework needs to evolve.

In other areas, such as defective cars under lemon laws, there are clearer protections and faster remedies. Should similar safeguards exist for financial fraud, particularly when consumers act responsibly and report early?

Banks play a critical role in safeguarding payment systems. Greater transparency in dispute decisions, clearer accountability, and more efficient resolution mechanisms would go a long way in restoring consumer confidence.

I hope this issue can spark a wider discussion on whether stronger regulations and protections are needed for victims of credit card fraud in Singapore.

Cheng Kia Seng