MOM Clarifies No Plans for CPF Scam Insurance Schemes

SINGAPORE: On Tuesday (July 4), the Ministry of Manpower (MOM) released a statement indicating that the Central Provident Fund (CPF) Board has “no intent” to consider implementing insurance schemes to protect members who have fallen victim to scams.

Earlier in Parliament, Manpower Minister Tan See Leng mentioned that an insurance scheme aimed at helping recover funds lost to scams is under consideration. Several Members of Parliament (MPs) raised concerns regarding cases involving CPF savings losses totaling $124,000.

Associate Professor Jamus Lim (WP—Sengkang GRC) questioned whether the Government is looking into initiatives like insurance, noting, “In usual banking-related frauds, insurance plays a big part in helping to recover fraudulent monies. And in this case, CPF is both a mandatory savings scheme and a very significant supplier. Thus, it may be possible to secure a fairly competitive insurance rate for additional protection.”

Minister Tan affirmed that discussions regarding this aspect are ongoing under the Shared Responsibility Framework (SRF), which involves financial institutions, telcos, and other relevant parties. He indicated that the Government is actively engaging with industry stakeholders and plans to release a public consultation paper in the third quarter of this year for further discussion.

However, MOM clarified in its evening statement that insurance schemes do not fall under the SRF, which focuses on enhancing the responsibilities of key parties in mitigating the risk of phishing scams and maintaining confidence in digital payments and banking in Singapore. The framework outlines the roles of telcos and financial institutions, along with customers’ responsibilities to safeguard against scams.

MOM emphasized that the framework represents a distinct approach, separate from scam insurance, where a third party would provide compensation guarantees to those suffering losses due to scams.