SG will mandate real-time fraud detection for banks

The Singapore government’s new mandate for financial institutions to implement real-time fraud detection by mid-2025 is a proactive approach to combating the growing number of phishing scams and unauthorized withdrawals.

This initiative, part of the Shared Responsibility Framework (SRF), requires banks to suspend transactions that quickly deplete accounts until customer verification, with a bank liability for full repayment if no action is taken.

Financial institutions must implement machine learning algorithms and rule-based systems to flag anomalies in real time, with automated mechanisms that alert the customer or temporarily halt suspicious transactions.

There will be a mandatory grace period for digital token activations and restricted SMS sender IDs to reduce unauthorized account access through phishing.

SRF promotes collaboration across the financial, telecommunications and regulatory sectors by facilitating data sharing and consistent fraud reporting to improve threat detection and reduce response time.

This coordinated approach aligns with recent trends of escalating cyber attacks on financial services, with Singapore’s banking sector seeing an average of 1,827 attacks per week.

As real-time fraud detection becomes standard, this framework focuses not only on fraud detection, but also on providing a structured, system-wide response to prevent unauthorized access and transactions.

This initiative reflects a broader trend in cybersecurity, prioritizing a proactive and integrated approach that includes regulatory and cross-professional cooperation to secure assets and build public confidence in digital financial transactions.