CPF online withdrawal limit to be lowered from S$200,000 to S$50,000 a day to guard against scams
In an effort to combat increasing scam cases, the Central Provident Fund (CPF) has announced a reduction in the maximum amount that can be withdrawn online from CPF accounts. Starting from Sep 25, the maximum online withdrawal limit will be lowered to S$50,000 per day from the current limit of S$200,000.
The CPF Board stated that this move aims to provide greater protection against scams, with enhanced authentication measures and a default daily withdrawal limit of S$2,000 already in place. Additionally, measures such as a mandatory 12-hour cooling period for updating contact and bank account details have been implemented to safeguard members’ funds.
According to data released by the Singapore Police Force (SPF), there were 26,587 reported scam cases in the first half of the year, resulting in an increased total loss of S$385.6 million compared to the same period last year. While fewer than 0.1 per cent of scam cases involved CPF withdrawals, most cases where CPF accounts were compromised occurred due to victims raising their daily withdrawal limits above the default S$2,000.
The CPF Board emphasized that even though withdrawals were authorized by the victims, the impact can be significant, especially when large sums of money are withdrawn. The police highlighted that 86 per cent of reported scams involved self-effected transfers, indicating that victims were manipulated into making financial transactions without the scammers directly gaining control of their accounts.
Lowering the daily withdrawal limit is seen as a necessary step to protect CPF members from falling victim to scams. Those members whose daily limit currently exceeds S$50,000 will be notified in advance and their limit will be automatically adjusted on Sep 25.
As scams continue to evolve, the CPF Board stressed the importance of adapting safeguards to ensure efficacy. While the lower daily withdrawal limit may inconvenience some members, it is a crucial measure to enhance the security of CPF accounts and prevent financial losses due to fraudulent activities. Members are encouraged to plan their withdrawals in advance or visit CPF Service Centres for large withdrawals, which may take up to a week to process.
