16 Sep 2024
SOURCE: CPF Board
CPF Board’s anti-scam unit - starting from top left and moving clockwise: Li Lin, Kai Jyh, Samuel, Yi Wen, Ryce, and Yong Kuang
It is essential to protect your savings against scams, particularly your CPF savings which are meant to provide you with regular payouts in retirement, as scams can result in significant financial losses and even debt.
In the first half of 2024, there were over 26,000 reported scams in Singapore, of which less than 0.1% involved CPF withdrawals – of all which were authorised by the victims. While the proportion of scam cases involving CPF withdrawals is small, every dollar belonging to our CPF members counts.
With scams continuing and scam typologies constantly evolving, CPF Board is sparing no effort to better partner members in safeguarding their CPF savings. A dedicated anti-scam unit has also been established in CPF Board to spearhead anti-scam initiatives, and to continuously review and enhance existing measures. How do they do what they do? Quek Yong Kuang, Heng Yiwen, and Tay Li Lin share more about the unit’s anti-scam efforts.
"We wanted to provide options for our members to customise their level of protection." - Yong Kuang
“I joined the Board upon graduating from university in June 2020, starting off in the Policy Department, until I was rotated to the Retirement Withdrawals Department (RWD) in January 2023. Shortly after, I was asked to join the anti-scam unit. Given the significance of the job scope, I did not hesitate to accept.” Yong Kuang said.
Even before the formation of the unit, CPF Board had existing security measures such as ensuring that CPF savings are credited to a bank account that is verified to belong to the member, Singpass Two-Factor Authentication, and other enhanced authentication measures.
“However, with scam tactics continuously evolving, our team recognised the need to deploy measures that impede scammers' efforts and minimise losses. But deciding on measures to protect members’ CPF savings does not only come from us. We wanted to provide options for our members to customise their level of protection based on their circumstances and preferences, through a combination of recommended default settings and easily accessible tools to adjust these settings,” Yong Kuang recalls.
With that as a guiding principle, he was among the pioneer team who implemented the online Daily Withdrawal Limit (DWL) and CPF Withdrawal Lock, which were rolled out at the end of 2023.
A major challenge faced by the team involved deciding on the right parameters for the measures and implementing them quickly. Yong Kuang shared that as soon as the anti-scam unit was established, the group began using data analytics to guide data-driven decisions.
An example was when the team was tasked to review industry practices as part of setting the parameters for the measures. “When reviewing what quantum to set as the default DWL, we benchmarked against industry standards; $2,000 is currently lower than the default daily online funds transfer limits set by local banks, which ranges from around $3,000 to $5,000. The team also analysed members’ withdrawal trends and found that a default DWL of $2,000 would cater to most who may have an urgent need for cash, while also mitigating potential losses in the event of a scam,” Yong Kuang added.
The team also worked closely with the CPF Board’s IT departments to prepare various test scenarios and coordinated rigorous testing exercises. These were critical to ensure that the parameters worked as intended, such as having a 12-hour cooling period for DWL increases (but not DWL decreases) and ensuring the DWL and CPF Withdrawal Lock do not affect members’ total withdrawable amount.
"We would not have successfully implemented these safety measures if not for the tenacity and resilience of our officers." - Yi Wen
“I, too, joined CPF Board’s Policy Department in June 2017 right after my graduation. I then did a stint with the Service Learning and Excellence Department on benchmarking, strategy, and data analytics for customer service before moving to the Retirement Withdrawals Department in January 2023, providing operational and consultancy support to the anti-scam unit,” Yiwen said.
In addition to supporting the implementation of DWL and CPF Withdrawal Lock, Yiwen also worked on an initiative to set members’ bank record with one preferred bank account, which includes incorporating enhanced authentication measures and a 12-hour cooling period for bank account updates.
The 12-hour cooling period for bank account updates is intended to provide members sufficient time to take action to prevent any unauthorised adjustments to their bank account details. As members’ bank account in CPF records is used for numerous transactions, the project involved various departments. “It was challenging to ensure that all relevant departments and our vendor work in tandem, but the teams managed to accomplish the project with close coordination and teamwork,” said Yiwen.
The team has also kickstarted several enhancements aimed at improving the ability to identify and prevent suspicious transactions, through the deployment of Machine Learning strategies among other methodologies.
"Public education remains crucial in combating scams as many of us may underestimate our susceptibility to scams" - Li Lin
“I joined the Board in September 2020 and have been primarily involved in managing operational tasks and overseeing projects related to retirement withdrawals of members who turned 55. However, due to the emergence of scams targeting CPF retirement withdrawals, we had to address these cases as a top priority, even before the dedicated anti-scam unit was formed.” Li Lin said.
Aside from supporting daily anti-scam operations which include handling members’ enquiries and reports, an important part of Li Lin’s role in the anti-scam unit is working on public outreach initiatives to educate members on protection against scams.
Two common types of CPF-related scams are Government Officials Impersonation Scams and investment scams. These scams rely heavily on social engineering tactics to deceive victims into transferring money on their own accord. “Even as we seek to strengthen our digital and technical defences, public education remains crucial in combating scams as many of us may underestimate our susceptibility to scams,” Li Lin explained.
Be Cyber Safe Workshop for Seniors – another anti-scam team member, Samuel Chong, seen explaining the CPF Withdrawal Lock to a senior
On this front, the team regularly holds public outreach initiatives such as talks in partnership with the Cyber Security Agency of Singapore (CSA), at CSA’s Be Cyber Safe Workshop for Seniors, to educate and remind the public about common tell-tale signs of scams and promote the use of existing CPF anti-scam measures, such as activating the CPF Withdrawal Lock to safeguard their CPF savings if they do not have immediate withdrawal needs.
“The challenge lies in the fact that public education is an ongoing and perpetual effort. We can only be successful when our members stay alert to any suspicious signs or activities, and work closely with us in the fight against scams,” said Li Lin.
Amid the ongoing pressure to safeguard members’ CPF savings, the three of them, together with their teammates Kai Jyh, Samuel and Ryce, take pride in their collective effort, emphasising the invaluable role of teamwork in this worthy mission.
“It has been quite a wild ride – scams continue to evolve rapidly, necessitating the rapid development of new initiatives to safeguard members’ CPF savings. I’m proud to say that the team has demonstrated resilience and agility, and we would not have successfully implemented the various measures if not for the tenacity of our officers,” Yiwen expressed proudly.
Li Lin added, “Scams involving authorised CPF withdrawals are a relatively recent development, which can be intimidating without prior experience. However, the support from colleagues and supervisors has been reassuring. Regular team discussions help us troubleshoot and advise members, building our experience and confidence.”
“At CPF Board, teamwork is crucial, and the culture of supporting one another motivates me to reciprocate accordingly,” Yong Kuang said.
The battle against scams is an ongoing endeavour, and the CPF Board’s anti-scam unit remains dedicated to continuously reviewing and enhancing measures to safeguard every member’s savings. The latest upcoming measure focuses on lowering the maximum DWL from $200,000 to $50,000 with the aim of introducing more time between transactions and limiting potential losses, without inconveniencing the majority of members making legitimate withdrawals today.
Remain vigilant by staying updated on the latest CPF anti-scam security measures here!
Information in this article is accurate as at the date of publication.
