E-wallet claims surpass S$441,000 in first month under FIDReC

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Over S$441,000 in claims have been filed against e-wallet providers in Singapore within the first month of their inclusion under the Financial Industry Disputes Resolution Centre Ltd (FIDReC). This milestone, following the providers’ mandatory subscription to FIDReC on 16 December 2024, underscores the growing financial risks within the digital payments ecosystem.

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According to FIDReC, the total claims amount to S$441,625.12, with a median claim of S$1,093.50 and an average claim of S$27,601.57. These figures reveal the significant financial impact of disputes involving e-wallets. Common issues reported include fraud or scams, delays in customer service, and unauthorised transactions stemming from lost cards.

Of the 16 claims received, one was resolved during the early resolution stage, which gives financial institutions 10 business days to settle complaints directly with consumers. Ten claims remain in this early stage, while five unresolved cases are being reviewed for eligibility to proceed to mediation.

FIDReC’s Chief Executive Officer, Ms Eunice Chua, highlighted the proactive measures consumers should adopt to reduce the likelihood of disputes. These include enabling transaction notifications, topping up only necessary amounts in e-wallets, and understanding refund policies. She also urged consumers to familiarise themselves with anti-scam resources such as ScamShield.

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Ms Chua noted that while FIDReC continues to adapt to the evolving financial landscape, consumers should verify whether their financial institutions are FIDReC subscribers before lodging disputes.

The inclusion of e-wallet providers under FIDReC stems from the Monetary Authority of Singapore’s Shared Responsibility Framework, implemented to bolster accountability and trust in digital payments. A total of 34 e-wallet providers have subscribed to FIDReC under the new Payment Service Providers category, joining banks, insurers, and other financial entities in providing consumers with a clear channel for dispute resolution.

As digital payment systems grow in complexity and reach, these developments underscore the importance of consumer education and robust safeguards to navigate potential challenges. Consumers seeking a list of FIDReC subscribers can visit FIDReC’s website.

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