Card-issuing banks in Singapore to require additional verification for mobile wallet users

(Photo credit: ST File)

Source: The Straits Times

The Association of Banks in Singapore (ABS) said major card-issuing banks have adjusted their fraud surveillance measures in response to a rise in scams involving mobile wallets.

ABS added that it has observed a rise in phishing scams involving the fraudulent provisioning of debit and credit cards into mobile wallets. Mobile wallet providers include Apple Pay, Google Pay and Samsung Pay, which are used on iOS and Android-based smartphones.

“Major card-issuing banks have adjusted their fraud surveillance measures in response and have prevented $53.9 million of losses in Q4 2024,” it noted in a statement on Feb 17, adding that banks will continue to enhance their measures.

By July 2025, banks will require additional verification, such as in-app controls or digital token authentication, to provision cards onto mobile wallets.

Furthermore, banks will also take proactive steps to remove those provisioned to mobile wallets if there are “indicators of fraudulent activity”, it said.

Scammers who were able to gain control of their victims’ credit cards by phishing and using them for illegal mobile payments netted at least $1.2 million in the fourth quarter of 2024, Singapore authorities reported on Feb 17.

At least 656 cases were reported, with 502 incidents involving cards linked to Apple Pay.

ABS said in such scams, victims are tricked into providing their card details on a phishing website. Customers are also tricked into providing their SMS one-time password to scammers to authenticate the provisioning of the card onto a mobile wallet on the scammer’s device.

Once completed, the scammer can use the mobile wallet to make unauthorised purchases or transactions.

It added that customers should remain vigilant. ABS recommends that customers set low card transaction notification thresholds and call their banks immediately if they notice any unauthorised use.