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Parliamentary Replies
 Published Date: 10 September 2026

Oral reply to Parliamentary Question on unauthorised banking transactions and adequate fraud prevention safeguards

Date: For Parliament Sitting on 10 September 2026

Name and Constituency of Member of Parliament

Ms Denise Phua Lay Peng, Jalan Besar GRC

Question

Ms Denise Phua Lay Peng: To ask the Prime Minister and Minister for Finance (a) how does MAS ensure that the dispute resolution processes for unauthorised banking transactions are accessible and fair to consumers without legal or financial expertise; (b) whether clearer guidance and assistance can be provided to this group of consumers; and (c) whether banks should bear a greater burden of proving adequate fraud-prevention safeguards before liability is assigned to such consumers.

Answer by Mr Chee Hong Tat, Minister for National Development, and Deputy Chairman of MAS, on behalf of Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry (Trade), and Chairman of MAS:

1. MAS requires banks to provide clear channels for customers to report unauthorised transactions and to handle such disputes in a fair manner. This includes promptly commencing investigations and, pending the outcome, not requiring customers to pay for the disputed transaction and its related charges. Banks are expected to clearly explain to customers how liability has been assessed.

2. Payment card schemes also have established rules to protect customers. Customers who promptly raise disputes with their card issuers will generally not be liable for unauthorised transactions with merchants that do not enable the 3-D Secure (3DS) protocol. Instead, the merchant involved will be liable for the loss.

3. If customers were assessed to be responsible for the loss following investigations, banks may offer goodwill payments to customers taking into account the circumstances of each case, including the customer’s financial situation and vulnerability.

4. Where customers disagree with a bank's assessment on liability, they can escalate the matter to the Financial Industry Disputes Resolution Centre which offers an independent and affordable avenue for dispute resolution without the need for legal representation.

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