Why did OCBC initially claim primary liability lay with users?

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OCBC Initially Stated Primary Liability Lay with Users Due to Safety Concerns and Difficulty in Fund Recovery

OCBC initially contended that the primary responsibility for security rested with individual customers, citing the inherent difficulty in recovering funds once they had been stolen. This stance was articulated in response to a series of sophisticated phishing scams that targeted OCBC clients. The bank's initial position highlighted a belief that user vigilance was paramount in preventing such fraudulent activities.
Sophisticated Phishing Scams Led to Significant Financial Losses

Between December 24th and 26th, 2021, scams reported by OCBC customers amounted to S$2.7 million. Overall, as of December of the same year, 469 OCBC customers reported losing approximately S$8.5 million in total due to phishing scams. These incidents often involved victims receiving SMS messages that appeared to be from OCBC, prompting them to click on links due to supposed suspicious activity or account issues, leading to the compromise of their online banking credentials.
Recovery of Stolen Funds Posed Significant Challenges

Beyond the initial security lapse, OCBC also pointed to the extreme difficulty associated with recovering funds once they had been transferred out of victims' accounts. The scammers' method of rapidly re-transferring money to multiple other accounts made tracing and reclaiming the stolen money a complex and often futile endeavour. This operational challenge underscored the bank's initial assessment of the situation.
User Vigilance Was Considered the First Line of Defence

The bank's initial assertion of primary liability with users stemmed from the belief that individual customers are the first line of defence against such attacks. The scams were described by OCBC as "particularly aggressive and highly coordinated," exploiting the trust users placed in seemingly legitimate communications and websites. This perspective emphasised the need for heightened awareness and caution on the part of account holders.

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Why did OCBC initially claim primary liability lay with users?

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