New anti-phishing framework increases compliance costs for banks and telcos

Including e-commerce, social media, and ISPs in the mandate may be a wise move.

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A Singapore plan to assign duties to banks and telecommunication companies in the fight against phishing scams could increase compliance overhead, while creating a false sense of security among consumers who think they are fully covered.

Benjamin Tan, chief technology officer of one of Singapore's major mobile network operators, SIMBA Telecom, formerly TPG Singapore, told Singapore Business Review in an email response that customers may have a misconception "that their losses are fully indemnified by the banks or telcos." Liew Ying Yi, local principal for financial services regulatory at Baker McKenzie Wong & Leow, offered a different view, saying that the framework "is a step in the right direction and serves to strike the right balance between protecting vulnerable consumers on one hand and also discouraging complacency" on financial institutions and telco players.

Liew clarified that under the Shared Responsibility Framework by the Monetary Authority of Singapore (MAS) and Infocomm Media Development Authority (IMDA), consumers still ultimately "bear the loss" if both financial institutions (FIs) and telcos fulfill their obligations.