SINGAPORE – In a significant move aimed at enhancing security, bank customers in Singapore will soon be required to use Singpass Face Verification (SFV) during the digital token setup process.

This initiative, announced by the Association of Banks in Singapore (ABS) and the Monetary Authority of Singapore (MAS) on September 18, is designed to better shield customers from rampant online scams.

Starting in October, major retail banks will roll out this feature over the next three months, making it a cornerstone of their security protocols.

The SFV process is intended to thwart scammers who attempt to hijack a customer’s digital token by setting it up on their devices using stolen credentials such as SMS texts, one-time passwords (OTPs), or bank card details.

A digital token is indeed crucial;

it facilitates secure logins and transactions within a mobile banking app, utilizing push notifications for user approvals in a method known as two-factor authentication.

Under the new measures, SFV will be activated in higher-risk situations, requiring a face scan to authenticate the customer's identity against national records before they can activate their digital token.

For those without a Singpass account,

registration and app download are necessary prerequisites for digital token setup.

ABS director Ong-Ang Ai Boon emphasized that Singpass Face Verification strengthens customers' defenses against unauthorized access, complementing existing security measures.

In addition to this new verification layer,

banks are actively phasing out OTPs for account logins and introducing features like the "money lock," which allows clients to secure specific funds from digital access.

Ong-Ang urged customers to remain vigilant and adopt good cybersecurity practices as banks continue to enhance their defenses against fraud.

MAS's Assistant Managing Director for Policy, Payments, and Financial Crime,

Loo Siew Yee, reiterated the importance of consumer awareness concerning evolving scam tactics.

She encouraged users to stay informed about the latest scams and utilize features like the money lock to protect their assets.

Both United Overseas Bank (UOB) and DBS Bank have expressed support for the initiative,

announcing their intentions to implement SFV in their banking apps starting in October.

OCBC Bank is set to follow suit by November.

Spokespersons from these banks acknowledged the dynamism of scam methods

and highlighted that consumer vigilance plays a critical role in fraud prevention.

In fact, over a million DBS and POSB customers have benefited from various security measures like digiVault, which protects against scams.

DBS has also intensified educational efforts

to equip the public with knowledge on avoiding scams by expanding digital literacy workshops across neighborhoods.

While the introduction of SFV is expected to add some complexity to the digital token setup process,

banks agree that these heightened security precautions are necessary to safeguard customers from increasingly sophisticated scams.

Existing since December 2020 for government digital service users,

the SFV feature has proven effective for various verification needs.

Alarmingly, recent statistics show that in the first half of 2024 alone, scam victims in Singapore suffered losses exceeding $385.6 million, marking a 16.3% increase from the previous year.

Notably, in this period, 86% of scams involved manipulation rather than outright account takeover.

Law enforcement agencies are particularly concerned about older adults,

who, despite representing only 7.2% of scam victims, are at high risk of losing life savings, often without the hope of financial recovery.

The urgent call to action is clear: both banks and customers must fortify their defenses in this ongoing battle against digital fraud.