Fraud Claims Involving Digital Banks Surge in Singapore, Totaling $1.9 Million in Losses
- ByStartupStory | November 18, 2025
Singapore has witnessed a notable surge in fraud and scam claims targeting digital banks, with financial losses reaching approximately $1.9 million in the first eight months of 2025. According to data from the Financial Industry Disputes Resolution Centre (FIDReC), scam claims against digital banks more than doubled, rising to 94 claims in January-August 2025, compared to 42 claims recorded for the entire year of 2024.
The majority of fraud cases involve compromised credentials, phishing attacks, and impersonation scams where fraudsters pose as government officials or bank representatives to deceive victims into transferring money. These breaches often result in significant financial losses and emotional distress for individuals and businesses alike.
Digital banks such as Trust Bank, GXS Bank, MariBank, Anext Bank, and Green Link Digital Bank—serving retail and MSME clientele—have been the primary targets. Although the fraud cases constitute a small percentage of total financial disputes, their rising trend is a growing concern for regulators and the industry.
In response, digital banks have ramped up security measures including real-time transaction monitoring, 24/7 support lines, and “speed bumps” to flag suspicious transactions before completion. Financial institutions, regulators, and telecom companies have collaborated under the Shared Responsibility Framework to enhance consumer protection. Additionally, seven banks have co-located staff at Singapore’s Anti-Scam Centre to accelerate response and fund recovery efforts.
Experts highlight that digital banks, despite lacking physical branches, offer new fraud detection technologies such as AI-powered alerts and continuous monitoring to mitigate risks. Public education and vigilance remain crucial, cautioning customers to verify investment offers through official channels and avoid sharing sensitive information.
The Monetary Authority of Singapore (MAS) supports these efforts by implementing stringent anti-money laundering policies and providing resources through the ScamShield app to help citizens identify and report scams. Law enforcement agencies also actively pursue scam networks and have seized millions in fraudulent funds through coordinated raids.
Though digital banks represent the future of banking convenience, their rise necessitates ongoing innovation and collaboration to thwart increasingly sophisticated scam tactics. Singapore’s commitment to a secure digital banking ecosystem aims to protect consumers while fostering trust in the nation’s fintech advancement.
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