Singapore banks to enforce 24-hour cooling period for digital transactions exceeding 50% of account balance

[SINGAPORE] In a move to fortify protections against scams, major retail banks in Singapore will implement enhanced fraud surveillance measures for all digital transactions from Oct 15.

The Association of Banks in Singapore (ABS) announced on Friday (Oct 3) that seven major retail banks will be participating in this initiative: DBS, OCBC, UOB, Citibank, HSBC, Maybank and Standard Chartered.

The enhanced protection will be activated for both current and savings accounts, including joint accounts, with balances of at least S$50,000.

A 24-hour “cooling period” or immediate rejection will be triggered when a transaction, combined with other withdrawals over the previous 24 hours, exceeds 50 per cent of the account’s balance.

The safeguard will apply to all digital banking transactions done through bank apps and Internet banking. Non-digital banking transactions, including cash withdrawals at bank branches and ATMs, will not be affected.

Certain transactions are exempt, including recurring standing instructions, recurring Giro/eGiro payments, and bill payments to organisations classified as billing organisations by the bank.

When a transaction is held, customers will receive an immediate notification through their mobile banking app or Internet banking platform with instructions for the next steps. For legitimate transactions, no action is required; the funds will be released automatically after 24 hours.

The cooling period is meant to provide time for victims to cancel the transaction should they subsequently realise that they have been scammed.

“Consumers should expect more of their transactions to be held for 24 hours, or rejected immediately,” said ABS.

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Customers should plan time-sensitive banking transactions like share purchases in advance to avoid incurring fees and charges due to any delay, ABS advised.

Individual banks will be communicating further details about the implementation of these enhanced measures to their customers leading up to the Oct 15 launch.

In the coming months, customers can also expect additional security features, such as in-app push notifications to acknowledge outbound calls from their banks, providing further assurance of the legitimacy of the communication, ABS said.

This latest initiative is part of an ongoing effort by the banking industry, in collaboration with the Monetary Authority of Singapore and law enforcement, to combat scams.

While scam cases in Singapore saw a decline in the first half of 2025, they remain a significant concern.

ABS director Ong-Ang Ai Boon said that scams “remain a scourge on society” and the methods adopted by scammers continue to grow in sophistication.

“The measures announced today will help to protect phishing scam victims and stop fraudulent withdrawals before it is too late,” she said. “This societal safeguard may result in some friction, and we seek customers’ patience and understanding.”