Singapore FIs Study | Fraud prevention trends
Combatting escalating fraud in a digital world
Download our report to find out how financial institutions in Singapore are safeguarding their digital products and channels in an age of increased digital adoption.
68%
of FIs predict an increase in money laundering in the upcoming year
28%
of FIs lack organisational integration across compliance, fraud and cybersecurity
58%
of FIs reported challenges with incorporating guidelines issued in the last year
Due to increased fraud and cyber risks, financial institutions in Singapore reported a loss of $453 million in 2021 to scams, 2.5 times higher than 2020.
In this report, we analyse emerging trends in Singapore financial institutions (FIs), their digitalisation priorities and existing gaps in fraud prevention and mitigation.
The study gauges the digitalisation priorities of FIs, assessing key fraud and security challenges, as well as evaluating the existing gaps that need to be overcome to mitigate fraud in a rapidly digitalising world.
Findings
Digital adoptionis accelerating in Singapore, spurred on by the increased impetus from regulators and the growth of the digital economy. Digital and technology transformation initiatives are expected to further accelerate the growth of digital transaction volumes in the next three years.
Regulatory penalties emerge as the largest fraud-related loss as local regulators issue new guidelines. The majority of FIs also face challenges in incorporating new regulations issued in the past year.
Organisational integration across compliance, fraud and cybersecurity is still lacking in some FIs, falling behind regional peers like Indonesia and Thailand.
Continual technology and skill development that holistically encompass people, processes and technology is required to address increasing fraud incidents. However, some FIs have yet to plan for additional human resource requirements, falling behind regional peers.
Cyber threats and frauds of almost all types increased in 2021, with phishing, data breach and scams emerging as top concerns. Money laundering is predicted to grow in 2022, along with malware, phishing and scams.
Fragmented data emerges as a key gap in fraud risk investigation, indicating a need for data integration to strengthen fraud management processes. FIs in Singapore are prioritising continuous risk assessments across the customer journey.