Alvin Tan on unauthorised bank transactions where use or receipt of SMS OTP is disputed

The Financial Industry Disputes Resolution Centre is aware of two cases since July 2022 of unauthorised bank transactions where the use or receipt of SMS one-time password (OTP) by the customer is disputed. The police have not received any such reports since 2021. Monetary Authority of Singapore Board Member Alvin Tan revealed this in Parliament on Monday (May 8) in answer to an MP’s questions. Mr Tan said such cases, where an unauthorised transaction took place and the bank determined that the OTP SMS messaging was used but the customer’s telephone operator records showed no such transmission or receipt, are “quite rare”. He said bank customers who suspect or are alerted to an unauthorised transaction must immediately contact the bank or activate a kill switch to freeze their accounts, and make a police report. Banks, on their part, are expected to treat customers fairly if there is a dispute and depending on the outcome of investigations, they may offer a goodwill payment.