Consumers and small businesses wary of e-payments due
to fears of unauthorised transactions through their bank accounts
can soon be assured of no liability as long as they keep the
account details secure, new guidelines proposed on Tuesday (Feb 13)
showed.
The Monetary Authority of Singapore (MAS) outlined the
liabilities held by these customers in the event of unauthorised
mobile transactions, and set out the banks' responsibilities in
notifying customers of e-payment transactions so that account
holders can keep track of digital fund flows.
The guidelines will apply to both individuals and small
business owners, defined as "micro-enterprises" that either hire
fewer than 10 staff, or make less than S$1 million in annual
turnover.
The guidelines come after Singapore
launched PayNow, a free service offered by seven retail
banks that enables mobile fund transfers through the recipient's
mobile phone number or NRIC number. Since the scheme was launched
in July, more than a million users have registered with PayNow.
Account holders who were careful in protecting their
accounts would not be liable for any unauthorised transactions, MAS
said. This would typically mean such customers used strong
passwords and tucked them away, as well as installed the security
patches regularly released by tech-product makers.
Consumers or small businesses found to be careless but
not reckless in contributing to unauthorised transactions that are
being disputed, will be liable for up to S$100. Such account users
may have misplaced a mobile phone or have accidentally given away
passwords.
But if banks can prove that reckless behaviour by
customers led to the unauthorised transactions, consumers would
then be liable for the actual loss.
When a "fat finger" transaction has occurred - that is,
when a payment is made to a wrong person by accident - customers
can work with the sending and receiving banks to have the funds
returned in about a week's time.
MAS said banks should offer transaction notifications
so that account holders can monitor their accounts. At the minimum,
the banks should send account holders an SMS or e-mail of the
consolidated list of all the e-payments in and out of bank
accounts, at least once a day. The information should identify the
recipient, as well as each transaction's amount, date, and
time.
The proposed guidelines are not mandatory, but MAS has
the power to make these guidelines enforceable under law.
The guidelines will also not apply to scams such as
phishing. Such cases are referred to the police, with the
fraudsters prosecuted under law.
In a media statement, MAS deputy managing director
Jacqueline Loh said: "MAS hopes that these guidelines will help to
make e-payments simpler and more secure, and give individuals and
micro-enterprises more confidence to adopt and integrate e-payments
into their daily activities."
MAS is seeking public feedback on the guidelines until
March 16. It plans to publish the guidelines in the first half of
this year.
ST