SINGAPORE: Some policyholders of Prudential have encountered erroneous deductions from their bank accounts, the Monetary Authority of Singapore (MAS) confirmed on Thursday (May 24).
"Customer accounts of multiple banks were affected. This was not a cyber attack but an operational lapse," said MAS in a media release.
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Multiple affected customers approached Channel NewsAsia and took to social media on Thursday to complain about "unauthorised fund transfers" and erroneous premium deductions from their bank accounts.
A Channel NewsAsia reader, who wanted to be known only as Ms Huang, said she was notified of an unauthorised fund transfer of more than S$50,000 from her HSBC bank account at about 3.45pm.
When she called the bank, they advised her that they had received numerous phone calls from customers reporting unauthorised transactions on their bank accounts.
She added that her advisor sent her a message of apology from Prudential around 8pm.
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The message read: "Good evening. We apologise for the technical error on the billing. Some clients are over-charged today. Currently they are already investigating on the matter and will get it rectified ASAP."
A message of apology sent by Prudential to Ms Huang's advisor, as provided by Ms Huang.
A Facebook user named Terence Tan said a total of S$32,634 was deducted from his wife's bank account when it should have been S$326.34.
The 41-year-old operations executive told Channel NewsAsia that the money was later credited back into his wife's account around 9.30pm. He added that no explanation has been offered to him or his wife so far.
Screenshot of the deductions made in the account of Terence Tan's wife. The amount was subsequently credited back. (Photo: Terence Tan)
Another user, Angela Lee, said S$3,230 was deducted from her sister's bank account, instead of S$32.30. When she called Prudential regarding the mistake, she was told it was an "IT glitch".
An industry insider who requested anonymity said it seemed "like Prudential keyed in two more zeros by accident for the premium deductions."
ERRONEOUS DEDUCTIONS A TECHNICAL ERROR: PRUDENTIAL
MAS said in its statement on Thursday that it has directed Prudential and its payment bank, Standard Chartered Bank Singapore to return the customer funds without delay, to keep customers updated, and to investigate the root cause of the incident.
"We take a serious view of such operational lapses and will take follow-up supervisory measures where appropriate.”
In an email to Channel NewsAsia, Prudential confirmed that "a number of our customers experienced a GIRO deduction in excess of their insurance premium or a failed GIRO deduction".
"We have investigated the matter and found that this is due to a technical error," said a Prudential spokesperson.
"This was not a cyberattack. We are very sorry for the inconvenience caused."
The spokesperson added it was working with its bank partner to resolve the issue as quickly as possible" and to credit the relevant amount deducted back into customers’ accounts within the next 24 hours.
"Any interest lost will be refunded and any erroneous charges will be reversed as soon as possible," the spokesperson added.
OCBC bank addressed its customers on Facebook saying that they have rectified the accounts of those affected "by an error in GIRO deduction requests by Prudential".
"Customers who were affected should already see the erroneous transactions reversed in their bank accounts," added the bank.
This story came from a reader tip-off. If you would like to send in photos or videos of something newsworthy, WhatsApp our Mediacorp news hotline at +65 8218 8281 or message us on Facebook.
Prudential Singapore customers, you might want to check your bank statement now.
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Prudential Singapore bears brunt of complaints
Numerous Prudential customers in Singapore have taken to Facebook to complain about automatic deductions being made from their bank accounts that are 100 times the original sum.
These deductions were made on May 24, 2018.
For example, a S$100 deduction became a S$10,000 figure.
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OCBC Bank issue
However, it turns out the issue specifically affected Prudential customers who were also using OCBC Bank.
OCBC Bank issued a statement on its Facebook page on May 24, at 10.10pm, saying the erroneous transactions have been reversed:
Dear customers, we have rectified the accounts of those who were affected by an error in GIRO deduction requests by Prudential. Customers who were affected should already see the erroneous transactions reversed in their bank accounts.
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SINGAPORE - THE Monetary Authority of Singapore (MAS) said Thursday night that some policyholders of Prudential Assurance Company Singapore encountered erroneous deductions from their bank accounts.
Customer accounts of multiple banks were affected, the MAS said, adding that this incident was due to an operational lapse, not a cyber attack.
MAS has directed Prudential and its payment bank, Standard Chartered Bank Singapore to effect the return of customer funds without delay, to keep customers updated, and to investigate the root cause of the incident.
"We take a serious view of such operational lapses and will take follow-up supervisory measures where appropriate," it said.
A check on Prudential Facebook account indicated that policyholders had excess amount deducted from their accounts.
"We are aware that a number of you have experienced a GIRO deduction in excess of your insurance premiums or a failed GIRO deduction. We have investigated the matter and found that this is due to a technical error. This was not a cyber attack. We are very sorry for the inconvenience caused," the Facebook page said.
"Please be assured that we are working actively to resolve the issue as quickly as possible, and together with our bank partner, intend to credit the relevant amount deducted back into your accounts within the next 24 hours. Any interest lost will be refunded and any erroneous charges will be reversed as soon as possible."
A NUMBER of policyholders of Prudential Assurance Company Singapore experienced GIRO deductions in excess of their insurance premiums or failed GIRO deductions on Thursday.
In a statement late Thursday, Prudential said these erroneous deductions arose from a "technical glitch".
In a separate statement, the Monetary Authority of Singapore (MAS) said that this glitch affecting customers of multiple banks was due to an operational lapse, not a cyber attack.
No further explanations were offered for the erroneous deductions. But feedback from an online forum showed certain bankers have queried their clients over deductions. One policyholder said his premium was S$1,000 but Prudential had sought to deduct S$1 million from his bank account.
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MAS has directed Prudential and its payment bank, Standard Chartered Bank Singapore to effect the return of customer funds without delay, to keep customers updated, and to investigate the root cause of the incident.
"We take a serious view of such operational lapses and will take follow-up supervisory measures where appropriate," it said.
Prudential said that it is working with its banking partner to credit the relevant amount deducted back to its customers' accounts within the next 24 hours.
"Any interest lost will be refunded and any erroneous charges will be reversed as soon as possible," it added.
Affected customers may call Prudential's hotline at 1800-333-0333. Prudential also said it would be posting updates on its Facebook page and website.
