Online banking security makes top priority for Singaporeans amid rising fraud

By Gloria Methri

• A new FIS consumer survey finds security is the number one online banking priority for surveyed Singaporeans.
• 56% of respondents believe online banking fraud attempts are rising, with Millennials experiencing the most fraud and Boomers the least.
• Most surveyed consumers are seeking a balance of convenience and security in their online banking interactions.

In a landscape increasingly threatened by online fraud, Singaporean banking customers are making one thing clear: security is at the top of their innovation wishlist. According to a recent survey, the most coveted security feature among Singaporeans is “money lock,” designed to prevent unauthorised withdrawals. It outpaces other sought-after innovations like cardless transactions and voice-activated assistants.

Overall, when it comes to customer experience, the top priority for surveyed consumers is feeling confident that their personal information and assets are secure. While 86% consider this extremely or very important, 68% are satisfied with their bank’s performance in this area.

These findings are part of a major new survey of more than 1,000 retail banking customers in Singapore, conducted by FIS^®. The research explores those consumers’ attitudes towards the online banking customer experience, perceptions and experiences regarding online banking fraud, and approach to investing.

Banking fraud remains a concern

The survey revealed that 92% of consumers are concerned about online banking fraud. Most surveyed consumers (56%) also believe online banking fraud attempts have been ‘on the rise’ in the past 12 months, versus 27% who see it as unchanged.

Additionally, almost a quarter of Singaporeans surveyed have been victims of online banking fraud, underscoring the scale of the problem. These problems have prompted coordinated efforts by the Government, law enforcement, banks and FinTech players.

Fraud incidents were most widespread among surveyed Millennials (28-42-year-olds) (34%) and least prevalent among surveyed Boomers (59+-year-olds) (12%).

Commenting on security concerns by banking customers, Kanv Pandit, Head of Corporates and International Banking, FIS, said, “As online banking fraud becomes increasingly sophisticated, FIS is strategically investing in the implementation of new technologies to aid banks in their fight against scams. This includes embedding AI and machine learning in our products to mitigate fraud in billions of transactions. By leveraging advanced technologies, banks can anticipate new threats, understand fraud patterns with greater precision, and respond swiftly to emerging risks – ensuring that their customers’ trust and safety are protected.”

Balancing convenience with security

Of those surveyed who have experienced fraud, 51% saw their bank assume total responsibility and provide a full refund, versus 32% who received a partial refund. Along those lines, 53% of respondents expected banks to take full responsibility regardless of the reason for the fraud.

The Singapore Government’s new Shared Responsibility Framework, which is expected to be rolled out later this year, may address where the responsibility for fraud lies.

Banks that double down on security measures for fraud prevention may impose additional steps and inconvenience for customers when carrying out various banking interactions. FIS’ research found that most respondents are seeking a balance of convenience and security across the full spectrum of online banking interactions. In each category, only a minority of respondents sought convenience over security. Gen Zs (18-27-year-olds) were more focused on convenience in areas such as checking balances and statements, whereas the Boomers were much more conservative across the board.

Kanv Pandit added, “Examining attitudes towards balancing security and convenience, consumers want fast and seamless experiences in today’s digital age, however not at the expense of security. FIS is committed to helping banks unlock financial technology to combat scams and close the satisfaction gap. Banks must act swiftly or risk customers switching banks if security is perceived as not strong enough, particularly around investing and moving money.”