In a proactive move against the increasing number of scam cases, Singapore’s leading banks are introducing a new feature allowing customers to “lock up” a portion of their funds, ensuring they cannot be digitally transferred without stringent authentication measures.
The “Money Lock” Initiative
DBS, OCBC, and UOB have announced plans to launch their versions of a “money lock” feature by the upcoming month. This initiative, previously discussed within the banking sector, aims to provide an additional layer of security against scams.
Minister of State for Trade and Industry, Alvin Tan, highlighted the importance of this feature in Parliament last month. He emphasized that it would enable bank customers to designate a specific amount in their accounts that cannot be digitally transferred without rigorous authentication. “This will further help to limit losses against scams,” he remarked.
DBS’s digiVault: A New Approach
On Friday (Oct 6), DBS unveiled its innovative approach to this initiative with the announcement of its upcoming banking account, named digiVault. This account adopts a “digitally in, only physically out” strategy. While customers can transfer funds into this account digitally, outgoing transactions are restricted.
DBS elaborated that the digiVault account, set to be launched by the end of November, is designed to thwart scammers who might gain unauthorized access to customers’ phones and accounts, preventing them from executing fraudulent digital transactions. The only way to access funds in the digiVault will be through identity verification.
For this verification, customers will need to visit a bank branch and provide proof of identity, such as an IC or passport. DBS also mentioned that they are considering other verification methods, details of which will be disclosed next month.
This move by Singapore’s major banks underscores the financial sector’s commitment to safeguarding customers’ assets in an increasingly digital age. As scams become more sophisticated, such innovative measures are crucial in ensuring the security and trust of banking customers.
Also learn about Singapore’s Vigilant Fight Against Scams in our previous article.
