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SINGAPORE: The nickname feature for PayNow retail users will be discontinued on Jun 6 to strengthen protection against impersonation scams, the Association of Banks in Singapore (ABS) said on Wednesday (Apr 29).<\/p>\n
All display names will be automatically updated to reflect “selected letters of a retail payee’s registered account name with their financial institution” during PayNow transfers to safeguard customer privacy.<\/p>\n
No action is required by users, and all other aspects of receiving and transferring money via PayNow remain unchanged.<\/p>\n
“This approach balances the use of real names as a safeguard against account impersonation, while being mindful of privacy considerations,” said ABS.<\/p>\n
The association noted that scammers have been able to exploit the PayNow nickname feature by using the names of established entities or trusted individuals as their PayNow nicknames.<\/p>\n
This has enabled them to deceive victims into transferring money to fraudulent accounts.<\/p>\n
“With this enhanced security measure, scammers will no longer be able to masquerade as legitimate entities or persons, significantly reducing their ability to deceive unsuspecting users through PayNow,” ABS said.<\/p>\n
The nickname feature has been available since PayNow was launched in 2017, and was meant to address privacy concerns from customers who preferred not to display their registered account names when receiving payments via their mobile number or NRIC numbers.<\/p>\n
“However, given the current scam landscape, the upcoming change is essential to safeguard the interests of PayNow users against scammers,” said ABS.<\/p>\n
Currently, those who do not set PayNow nicknames will have the names that are linked to their registered accounts displayed to payers by default.<\/p>\n
Businesses using PayNow to receive payments via their unique entity numbers, or UENs, are unaffected by the change as they do not have access to the nickname feature and thus can only use their registered account names.<\/p>\n
“Safeguarding consumers against scams is a top priority for the industry,” said ABS director Ong-Ang Ai Boon.<\/p>\n
“Discontinuing the nickname feature removes an avenue that scammers can exploit while safeguarding customer privacy. This enhancement will help ensure that PayNow users continue to enjoy a secure and trusted payments experience.”<\/p>\n<\/div>\n