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UOB allegedly demands fraud victim to pay for unauthorized transactions and freezes bank account

Published

2 years ago

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SINGAPORE — A Singaporean netizen has complained on Facebook about her experience as a customer of United Overseas Bank (UOB) regarding the bank’s handling of fraudulent transactions.

Last week, a Singaporean netizen who goes by the name Joie Ng posted a lengthy complaint on the Facebook group ‘Complaint Singapore’. Ng claimed that fraudulent transactions had been made on her less-than-a-month-old Krisflyer Credit Card, without any One-Time-Password (OTP) being triggered.

She revealed that she became aware of the transactions when her phone rang in the middle of the night, and she immediately blocked her card using the UOB TMRW app.

“On 9th December 2022, 10.20pm 2 transactions without any OTP were made to ENHASA GAMES (634 BEDOK RESERVOIR ROAD #12-13 EUNOS TENAGA VILLE SINGAPORE (410634)). This company is known for selling game accounts. In other words, the scammer had used my card to make 2 separate purchases within 5 mins.”

She filed a scam case with the UOB call centre, but she did not receive any updates until December 2022.

“Through investigations, I was notified that my UOB Krisflyer Credit Card was added to a mobile device with a verified OTP on 7th December 2022 at 1:31PM. I was at work and I barely noticed. ”

Told bank accounts and cards have to be blocked

In mid-January 2023, the netizen was informed that her case had been changed from “scam” to “fraud,” and she was told that all her bank accounts and cards have to be blocked to prevent further fraudulent transactions.

“I mentioned that I am traveling to Bangkok for 2 weeks in 2 days’ time and my accounts are to be blocked without notice? The guy from the call center mentioned that UOB will not be liable for any further scams that take place with my accounts and cards if I did not do so. ”

Ng was told the investigation would take 90 days to 1 year from this day of blocking, and the bank will get back to her by 28 January.

She criticised that she is the victim who has been scammed for something she did not purchase and that she has only one bank account which UOB blocked without a valid reason.

” Days after this blocking, my ibanking was also blocked and I am unable to access it,” she added that this causing inconvenience and difficulty in managing her finances, including late payments and lack of money.

The customer allegedly asked to pay up

Despite being a victim of fraud, Ng reported that UOB called her in February and asked her to pay for the transactions charged on her card, or face late charges and incur interest.

Ng posed the question, “You blocked all my access and my accounts are under investigation. How am I supposed to pay when I have only one bank account and am unwilling to pay the amount?” She noted that her UOB TMRW account could not be accessed and was told to visit a branch to gain access.

On 15 February, Ng visited the UOB Bishan Branch to report the matter, requesting access to her UOB TMRW account and asking for her accounts to be unfrozen.

However, the branch manager informed her that the unfreezing process can only be initiated by calling the call centre.

Ng expressed concern about the long wait time, and the branch manager promised to write in on her behalf.

Offered 40% goodwill discount if the customer paid up

On 22 February, UOB’s call centre informed Ng that she would receive a 40% goodwill discount if she made a payment.

Ng alleged that the caller threatened to withdraw this discount if she were to dispute the transaction with the Financial Industry Disputes Resolution Centre (FIDRec).

“I have been scammed, and the lady behind the call threatened me to pay up,” Ng said.

Ng later filed two police reports and demanded a 100% reimbursement of the payment made without her authorization.

“Both UOB and the Singapore Police Force should examine this more carefully. I was told that UOB compliance did not contact my investigation officer before making such a decision.”

When asked by TOC, Ng stated that the police were unable to reveal anything else except for “investigations are ongoing.”

UOB has not followed up with Ng since she posted on Facebook.

TOC understands that all of Ng’s funds are trapped in the frozen account and she is not keen to pay for a service which she did not use.

Dissatisfaction with UOB’s security measures and customer service

The post documenting the netizen’s experience has raised concerns among UOB customers about the bank’s security measures and customer service.

Several netizens have shared similar experiences of fraudulent transactions on their UOB accounts.

Netizen Grayce Chew recounted her experience of having her UOB Krisflyer credit card compromised twice, resulting in multiple unauthorized online purchases made in USD without any notification or OTP requests.

Fortunately, as she checks her account balances daily, she was able to report the incidents quickly and received refunds from UOB within 1-2 months for the first instance, and within a week for the second instance after contacting the company responsible for the unauthorized transactions.

Netizen Michael Goo suggested that if a customer is unable to settle a dispute with UOB, they should approach FIDReC within 6 months of receiving the final reply from the bank. However, Ng pointed out that if she files a dispute, the offer of a 40% discount will be withdrawn.

Another netizen voiced her dissatisfaction with UOB’s handling of her scam case, which lasted approximately 22 months. Telco records revealed that OTPs and notifications were received 19 days after the scam occurred, while UOB insisted that the OTPs were sent to the registered phone number.

According to the netizen, the Monetary Authority of Singapore (MAS) provided her with a link to a list of lawyers to contact for dispute resolution through FIDRec.

Another netizen, Wong shared,  “Same thing happened to me 3yrs ago. UOB says this is a police case and police say I have to go after UOB for the refund (bank deducted payment as it was GIRO). 6 mths of endless calls and follow-up and basically no money back. Few K gone like that. Terminated my entire relationship with them, will never bank with them again.”

While Isabelle, another commenter, wrote, “It’s not just UOB, every bank will do this. This happened to me, but my bank was DBS. It has been locked since Nov’22 and my money is still inside. And it is a debit card so…..”

Freezing bank accounts among measures taken upon cases involving fraudulent transcations

On 24 February, Leong Mun Wai, a Non-Constituency Member of Parliament from the Progress Singapore Party, queried K Shanmugam, the Minister for Home Affairs, about the Singapore Police Force’s standard operating procedures when handling reports of fraudulent bank account withdrawals and debit card transactions.

In a written reply, K Shanmugam stated that upon receiving such reports, the Police would initiate investigations that involve taking statements and collecting evidence. If necessary, they would request the bank to freeze the account or deactivate the credit or debit card.

“The specific steps taken by the Police would depend on the facts and circumstances of each case. ”

He added that the Inter-Ministry Committee on Scams has collaborated with MAS and the Standing Committee on Fraud of the Association of Banks in Singapore to implement measures to detect fraudulent transactions and secure banking channels.

These measures include requiring additional customer confirmation for significant changes to their accounts, notifying customers of changes to contact details via registered mobile number or email address, and providing an emergency kill switch for customers to immediately freeze their bank accounts if they suspect they have been compromised.

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Consumer Watch

Indonesian financial authority warns against risks of online loans for concert tickets amid rising fintech usage

The Indonesian Financial Services Authority (OJK) warns against using online loans to purchase concert tickets, highlighting the risk of falling into high-interest debt traps.

Financial experts emphasize the risks involved and advise caution in borrowing for consumptive purposes.

Consumers should carefully consider financial knowledge and repayment abilities to avoid financial distress.

Published

1 year ago

on

19 July 2023

By

INDONESIA — In a recent statement, the Financial Services Authority (Otoritas Jasa Keuangan or OJK) has advised the public to exercise caution when selecting financial technology (fintech) lending or online loan (pinjol) services that offer loan promotions for concert ticket purchases.

The warning comes in response to the increasing number of advertisements by pinjol providers offering loans specifically for buying concert tickets.

When interviewed after the Indonesia Sharia Financial Olympiad (ISFO) event on Monday, May 22, Friderica Widyasari Dewi, the Executive Head of Financial Services Authority for Behavior Supervision of Financial Services Providers, Consumer Education, and Protection at OJK, stated that there had been numerous advertisements for online loans promoting the purchase of concert tickets.

This statement was confirmed by Mahendra Siregar, the Chairman of the Board of Commissioners of the Financial Services Authority (OJK), who mentioned an increase in the demand for online loans prior to the sale of Coldplay tickets at the Gelora Bung Karno Main Stadium in Jakarta on 15 November this year.

Despite the relatively high-ticket prices ranging from Rp800,000 to 11 million rupiahs (US$730), depending on the seating and view, ardent fans of the British rock band showed extraordinary enthusiasm. Their motto is, “Money can be earned, but when else can we watch a Coldplay concert if not now?” even though ticket sales were conducted during a financially challenging month.

Consequently, online loan services have become a viable option for many, despite the high-interest rates. They are willing to bear the high fees associated with online loans because they believe it is worth it for the happiness and experience they will gain.

To address this situation, the Financial Services Authority (OJK) took to their official Instagram account to remind the public to avoid falling into the trap of illegal pinjol companies.

They listed several characteristics of illegal pinjol providers to be wary of, including easy requirements with only an ID card as collateral, unclear owner and office addresses, offers made through SMS or WhatsApp, ambiguous interest rates and penalties, lack of complaint services, requests for access to personal data, and absence of OJK permits.

However, some members of the public still believe that both illegal and legal pinjol services treat customers similarly, making it difficult to distinguish between the two.

Devie Rahmawati, a Social Observer from the University of Indonesia, shed light on various factors driving people to go to extreme lengths to obtain Coldplay concert tickets.

She explained that in this digital era, there are different social typologies, such as the experience economy and attention economy.

The younger generations, including Gen Y, Z, and now Alpha, prioritize experiences over ownership and actively seek various experiences. The digital world serves as a platform to showcase oneself, making experiences a crucial element.

According to Devie, in the attention economy era, everyone strives to garner attention and be seen as existing.

She emphasized that ownership alone cannot make a person authentic or gain attention as a means to achieve recognition.

However, experiences, which not everyone can have, can be displayed and thus become valuable. The rare experience of attending a Coldplay concert is driven by the fear of missing out (FOMO) that is currently infecting the digital community. Devie further noted that music is an inseparable part of the younger generation, especially in the digital realm.

Furthermore, Devie pointed out that digital creatures are the most stressed individuals. As a result, one way to relieve stress is through music.

The ticket frenzy and the phenomenon of easily resorting to online loan services occur due to the combination of various factors, including the experience economy, attention economy, FOMO, and catharsis as a means of releasing stress.

Devie also stated that this phenomenon is closely related to capitalism, an economic system that allows everyone the freedom to engage in economic activities for profit.

She believes that individuals who dare to apply for online loans for something they consider will bring them happiness should not be entirely prohibited. However, they must possess financial literacy and the ability to repay their debt.

If acquiring a loan brings them happiness and enhances their enthusiasm for work, making them more productive and enabling them to repay their debts, it should not be a problem.

However, when such decisions are made without careful consideration and sound financial knowledge, it can lead to disaster.

Other financial experts have voiced their concerns. Ahmad Gozali, a Financial Planner from Zelts Consulting, emphasized that taking on high-interest debt, such as online loans, solely to purchase concert tickets, is a risky financial decision.

“Taking on high-interest debt, such as online loans, is a definite red flag,” warned Ahmad in a WhatsApp interview with Liputan6.

Rahma Maryama, an independent financial planner, also cautioned against incurring debt for consumptive purposes like concert tickets.

She suggested that loans or borrowing should be avoided unless they are used for productive activities. Rahma further outlined specific conditions for borrowing, including having a realistic understanding of one’s financial situation, having a stable income to repay the loan, and being able to arrange for prompt repayment.

Moreover, Rahma stressed the importance of not settling one debt by acquiring new loans, commonly known as a cycle of debt. This cycle can lead to further financial distress and should be avoided.

The convenience and speed of obtaining funds through online loan services have tempted many individuals without thoroughly examining the credibility and status of the service providers.

Rahma emphasized the need for online loan providers to be under the supervision of regulatory authorities.

She warned against being lured by features or facilities that seem too good to be true. Every loan product comes with its own risks that should be carefully considered.

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Consumer Watch

Singaporean doctor continues to encounter unauthorised charges despite 3 credit card replacements

A Singaporean doctor experienced unauthorised charges exceeding $3,600, including four transactions to AirAsia, despite her efforts to block and replace her credit card.

The case adds to the growing instances of fraudulent card usage, highlighting concerns among cardholders and leading to a warning from the Singapore Police Force about similar scams.

Published

1 year ago

on

14 July 2023

By

SINGAPORE  — Singaporean doctor was surprised to discover that her credit card details were still being used to make payments to AirAsia, even after she had attempted to block and replace her card two more times in an effort to stop these transactions.

The case contributes to the increasing number of reports by credit and debit cardholders in Singapore and internationally regarding fraudulent use of their card details to purchase services from legitimate companies such as OpenAI and Apple, while similar scams targeting Android users have also prompted a warning from the Singapore Police Force.

According to The Straits Times, the incident involved Dr. Zena Lim, an ophthalmologist who replaced her card after noticing that AirAsia had charged her UOB credit card for two transactions totaling over $1,060, which she did not authorize.

In total, over $3,600 in Malaysian ringgit and US dollars were taken from her bank account through six unauthorized payments, with four of them made to AirAsia.

While UOB has reversed the unauthorized payments from Dr. Lim’s account, the mystery remains unresolved. She has reported the matter to the Monetary Authority of Singapore (MAS) and the police.

Expressing her frustration, Dr. Lim questioned how it was possible for the same merchant to charge three different card numbers over a span of nearly two months without requiring authentication.

Merchants have the option to activate 3D Secure authentication, an additional safety feature that prompts customers to enter a password or code sent to their phone by their bank before a payment can be made.

She remains frustrated by the lack of answers regarding how this could have happened.

It should be noted that the only instance when Dr. Lim purchased an AirAsia ticket was when she bought her helper’s air ticket through eNets debit on her computer, using her DBS bank account.

A spokesperson from UOB (United Overseas Bank) mentioned that the bank has provided assistance to Dr. Lim and will support the investigation as needed.

The bank also emphasizes the importance of customers being vigilant about the security of their physical and digital cards, advising against sharing card and banking details with anyone, including family or household members.

The UOB spokesman said the bank has lowered the default threshold limit for all its card notification alerts to $500 as a preventive measure to help fight against card fraud.

As a preventive measure against card fraud, UOB has lowered the default threshold limit for all its card notification alerts to $500.

Additionally, customers have the option to adjust their threshold limit to nominal amounts through UOB Personal Internet Banking. This enables them to receive notifications for any transaction made on their accounts.

Regarding AirAsia, the airline’s support page stated that redit card fraud is a global issue affecting various industries, including airlines.

The statement emphasizes the importance of immediately contacting the bank to block the card if fraud is suspected, and also urges individuals to reach out to AirAsia through their guest support channels for a prompt internal investigation into the matter.

Increasing number of similar fraud

In 29 May, content creator Daisy Anne Mitchell posted on TikTok that she lost $205 over eight days through 28 small transactions, including charges of $1 and $3, made from her POSB account to Apple.

https://www.tiktok.com/@daizamazze/video/7238486892973411585

Recently a preschool teacher also shared to TOC that she fell victim to a sophisticated malware scam, resulting in an unauthorized transfer of S$4,400 from her POSB Bank account to an unknown UOB account via the PayNow platform, possibly originating from a suspicious app she had downloaded two months prior.

The Singapore Police have issued a warning to Android users after at least two individuals lost an aggregate sum of S$99,800 from their Central Provident Fund (CPF) savings due to a new kind of malware scam in June.

In Singapore, banks are not required to compensate victims of online bank fraud. In January last year, OCBC reimbursed S$8.5 million (US$6.3 million) to 469 customers who fell for an SMS phishing scam in December 2011 out of goodwill.

In the United Kingdom, banks are required by legislation to compensate victims’ losses for transfers made due to APP scams (Authorized Push Payments). This applies in cases where users at a business send money to a bank account controlled by fraudsters.

According to a spokesperson from the Monetary Authority of Singapore (MAS) in June, customers cannot be held accountable for unauthorized transactions if merchants have not implemented one-time password authorization for online card transactions.

However, it is the responsibility of merchants to enable 3D Secure (3DS) authentication, an extra measure that mandates customers to input a password linked to their card or a code sent to their phone via the bank’s website before completing a payment.

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