OCBC launches kill switch feature to tackle scams and frauds

OCBC has launched a kill switch that enables customers to immediately freeze their accounts in an emergency, approximately two months after the bank fell victim to a phishing scam. The kill switch can be activated via mobile or at about OCBC Bank ATMs in the event of a scam and will be available across all ATMs by March 2022.

Additionally, OCBC also launched a dedicated channel, accessible via the bank's official number, for customers to seek assistance for incidents of suspected fraud. A specially trained customer service executive can help customers freeze all bank accounts, guide them through the process of making a police report and follow up on their banking activities after informing the bank of the fraud.

With the kill switch, customers can immediately freeze all their current and savings accounts, ATM access, debit and credit cards and digital banking, as well as OCBC Pay Anyone app access, if they suspect they are a victim of a scam or if they believe account-related details have been otherwise compromised. Once the kill switch is activated, no transactions, be it digitally, via an ATM or at OCBC branch offices, can be made. This includes recurring or pre-arranged fund transfers as well. Previously, customers were only able to lock their credit or debit cards via the OCBC Digital mobile banking app when their cards get misplaced or when fraudulent transactions are detected.

Once the kill switch has been activated, an OCBC Bank customer service executive will contact the customer to remove compromised bank account access or cards, and issue new ones. The kill switch can only be deactivated by a bank branch employee or customer service executive, and will only do so after "receiving duly verified instructions from the customer". Once deactivated, the customer's account will revert to "normal" and all settings prior to the account suspension, including recurring payments and future-dated funds transfers. 

In response to MARKETING-INTERACTIVE, OCBC's spokesperson said that the two new initiatives will be shared through its usual customer communications channels. "The kill switch and dedicated ‘fraud hotline’ are in addition to the enhanced anti-scam measures that the Bank has implemented, in line with the industry’s efforts announced on 19 January 2022 by The Association of Banks in Singapore and the Monetary Authority of Singapore (MAS)," the spokesperson added.

OCBC said last month that its customers were subjected to a "particularly aggressive and highly coordinated" phishing scam since 3 December last year. This resulted in the victims losing at least SG$13.7 million. The scam involved sending customers messages with "too good to be true" deals. OCBC's investigations had confirmed that victims who had fallen prey had provided their online banking log-in credentials to phishing websites. After which, the scammers quickly transferred money out of the customers’ bank accounts.

Finance Minister Lawrence Wong recently said that OCBC should have “responded faster and more robustly” when it first saw signs of the scam early last December, Channel NewsAsia reported. He added during a parliament sitting on 15 February that this was "by far the most serious phishing scam" concerning spoofed SMSes impersonating banks. 

Since OCBC detected the scam, it has issued multiple alerts and warnings to its customers using multiple channels. These included issuing security alerts and advisories on its website, internet and mobile banking log-in pages, and through customer emails. On its social media channels, the bank posted tips on how to differentiate its messages from scammers', as well as a public service announcement video created in partnership with local influencer mrbrown. OCBC also delivered two media advisories, on 23 and 30 December 2021, which it says, was "well covered by the media". SMS messages were also sent to all customers on 30 December 2021 and 4 January this year to garner more awareness on scam incidents. 

Wong said during a parliament sitting on 15 February that the bank's call centre was "overwhelmed" by the time it informed the Monetary Authority of Singapore on 24 December that it had activated its incident response team. According to CNA, MAS also plans to conduct a thorough probe to identify the deficiencies in OCBC's processes and implement the necessary remedial measures. MAS will then consider appropriate supervisory actions against the bank. 

Although OCBC also made goodwill payouts to customers who fell prey to the recent SMS phishing scam, MAS said in a statement earlier this month that it was a one-off gesture given the bank's circumstances and does not set a precedent for the future. 

Photo courtesy: 123RF

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