OCBC Bank announced on Thursday that its newly launched anti-malware security feature successfully prevented more than S$2 million from being stolen by scammers. The bank has received reports from over 30 customers about their Android mobile phones being compromised by sideloaded apps, apps downloaded from sources outside of official app stores. However, the security feature in the OCBC Digital app blocked access upon detecting these malicious apps.
The security feature, which was rolled out on August 5, 2023, blocks access to the banking app if it detects apps from non-official platforms and flags those with risky permissions settings. It also prevents scammers from logging into OCBC internet banking via a web browser as it requires a physical hard token or a digital token within the OCBC Digital app. Since the update, no losses from malware scams have been reported by OCBC customers using this version of the app.
The security measure was introduced after a meeting among banks and authorities to tackle malware scams. The Monetary Authority of Singapore (MAS) has since backed the bank’s security feature and stated that any unintended inconveniences are in the nature of new innovations. The MAS also added that such measures are necessary to maintain security of and confidence in digital banking.
Beaver Chua, Head of Anti-Fraud at OCBC, highlighted the urgency for stronger defenses against malware scams. He said that once customers' mobile phones have been infected by malware, scammers can remotely access their mobile phones and make fraudulent transfers from their bank accounts via banking apps.
Chua also noted an increase in malware scams targeting Android mobile phone users in recent months, with social engineering by scammers becoming increasingly sophisticated. He stated that sideloaded apps are the main conduits used by such scammers.
The bank assured that while there was already more than S$2 million ($1 = SGD1.3648) in these customers’ savings accounts, the amount that might have been lost to scammers could have been much higher as scammers have previously redeemed fixed deposits and unit trusts early or drawn down cash advances under customers’ credit cards.
OCBC is among the first local banks to roll out anti-malware scam measures. It is not yet known what other security measures will be introduced by other banks to tackle malware scams.
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