OCBC Bank has begun distributing goodwill payouts to customers impacted by recent SMS phishing scams, starting from January 8, 2022.
In December, nearly 470 customers lost over $8.5 million due to scammers impersonating OCBC, sending SMS messages with links to fraudulent phishing sites. So far, more than 30 customers have received payouts following a thorough verification process. The bank has labeled this scheme as a “particularly aggressive and highly coordinated scam,” which exploited customers’ fears regarding potential issues with their bank accounts or credit cards.
The investigation revealed that victims had inadvertently shared their online banking login credentials on phishing websites. Subsequently, scammers quickly initiated fraudulent transfers from the victims’ accounts. This phishing scam first appeared in December 2021 and intensified over the holiday season.
Helen Wong, OCBC Bank’s Group CEO, expressed strong condemnation of the scam, emphasizing the distress it caused to customers. She reassured affected individuals that the bank is making every effort to review and validate claims before issuing payouts. Wong acknowledged that the bank’s response did not meet customer expectations during this challenging time.
To provide support for victims, OCBC has established a dedicated team and has proactively reached out to those affected. However, due to the complexity involved in these cases, the bank indicated that more time may be needed for a thorough review and validation process before contacting customers.
OCBC took preventative measures as soon as the scam was detected, issuing multiple alerts and warnings to customers since December 3, 2021. This included security advisories on the bank’s website, log-in pages, customer emails, and social media channels. Two media advisories were disseminated on December 23 and December 30, 2021, with SMS alerts sent to all customers on December 30, 2021, and January 4, 2022. Despite these proactive efforts, the bank acknowledged shortcomings in customer service and response at a time of heightened concern.
Wong reassured customers that the bank’s digital systems are safe and secure, emphasizing the convenience that digital banking offers. She cautioned that as scammers become increasingly sophisticated, it is vital for customers to remain vigilant and conduct transactions only through the bank’s official websites and mobile apps. OCBC is working in collaboration with the Association of Banks in Singapore and the Monetary Authority of Singapore to enhance anti-fraud detection and prevention measures.