Singapore banks trail 44% global scam reimbursement rate

Twelve per cent assess compensation individually rather than automatically.

Only three of 10 financial institutions in Singapore reimburse more than half of scam-related losses to customers, according to a report by BioCatch. 

This figure falls significantly short of the 44% global average.

The survey of banking leaders revealed that 33% of organisations compensate between 1% and 25% of scam victims. 

A further 27% reimburse between 26% and 50% of victims, whilst 26% refund between 51% and 75%. 

Meanwhile, just 1% of respondents report reimbursing between 76% and 100% of losses—the second-lowest rate recorded amongst all countries surveyed. 

Additionally, 12% of organisations handle refunds on a case-by-case basis, marking the second-highest rate in the study.

The report attributes the low compensation figures in part to Singapore's regulatory structure. 

Unlike certain international markets, Singapore lacks a dedicated mandatory reimbursement scheme for authorised push payment (APP) fraud. 

Instead, liability is assessed under the Shared Responsibility Framework (SRF), which distributes duties amongst banks, telecommunication companies, and consumers. 

Under this framework, if banks and telecom providers fulfil their specific regulatory duties, the financial liability remains with the customer.