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Investment Scam
bank scams CFPB Crypto Scam cryptocurrency Cyber Security DBS Bank Investment Scam

California Man Sues Banks Over $986K Cryptocurrency Scam



Ken Liem, a California resident, has filed a lawsuit against three major banks, accusing them of negligence in enabling a cryptocurrency investment scam. Liem claims he was defrauded of $986,000 after being targeted on LinkedIn in June 2023 by a scammer promoting crypto investment opportunities. Over six months, Liem wired substantial funds through Wells Fargo to accounts held by Hong Kong-based entities.

Liem’s ordeal escalated when his cryptocurrency account was frozen under false allegations of money laundering. To regain access to his funds, scammers demanded he pay a fake IRS tax—an established tactic used to maximize financial extraction from victims before vanishing.

The lawsuit names three financial institutions as defendants:
  • Chong Hing Bank Limited (Hong Kong-based)
  • Fubon Bank Limited (Hong Kong-based)
  • DBS Bank (Singapore-based, with a Los Angeles branch)

Allegations of Negligence and Non-Compliance

Liem accuses these banks of failing to follow mandatory “Know Your Customer” (KYC) and anti-money laundering (AML) protocols as required by the U.S. Bank Secrecy Act. The lawsuit asserts that the banks:
  • Failed to Verify Identities: Inadequate due diligence on account holders allowed fraudsters to operate unchecked.
  • Neglected Business Verification: The nature of the businesses linked to these accounts was not properly investigated.
  • Ignored Complaints: Liem reported the scam in August 2024, but the banks either disregarded his concerns or denied accountability.

The lawsuit contends that these financial institutions enabled the transfer of illicit funds from the U.S. to Asian accounts tied to organized scams by ignoring suspicious transactions.

Liem's case highlights the growing debate over banks' responsibility in preventing fraud. While lawsuits of this nature are uncommon, they are not without precedent. For instance:
  • January 2024: Two elderly victims of IRS impersonation scams sued JPMorgan Chase for allowing large international transfers without adequate scrutiny.

Globally, different approaches are being adopted to address fraud:
  • United Kingdom: New regulations require banks to reimburse scam victims up to £85,000 ($106,426) within five days, though banks have pushed back against raising this cap.
  • Australia: Proposed legislation could fine banks, telecom providers, and social media platforms for failing to prevent scams.
  • United States: The Consumer Financial Protection Bureau (CFPB) has taken legal action against Bank of America, Wells Fargo, and JPMorgan Chase for not preventing fraud on the Zelle platform, which has resulted in $870 million in losses since 2017.

As global authorities and financial institutions grapple with accountability measures, victims like Ken Liem face significant challenges in recovering their stolen funds. This lawsuit underscores the urgent need for stronger fraud prevention policies and stricter enforcement of compliance standards within the banking sector.
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Personal Information
Credit Card Credit Card Theft Cyber Security DBS Bank Hacker attack PDPC Personal Information

Esso Corporate Fleet Programme Hit by Ransomware Attack on Abecha Servers

 

A ransomware attack on Abecha, the company managing Singapore’s Esso Corporate Fleet Discount Programme, may have compromised sensitive credit card information of its customers. Abecha discovered the breach on August 13 and notified affected customers on August 28. According to the company, the hackers may have accessed customers’ credit card numbers and expiration dates, but other personal information, such as names, addresses, and contact details, appears to have remained secure. 

In light of the breach, Abecha advised customers to review their credit card statements for any unauthorized or suspicious transactions. They also encouraged prompt reporting of any unusual activity to prevent potential misuse. An Abecha representative stated that there was no indication that any data had been taken by unauthorized parties. The company assured customers that their transactions were secure, and normal business operations were continuing. The Esso Corporate Fleet Discount Programme, a collaboration with ExxonMobil, has been in operation since 2003 and currently serves more than 18,000 corporate clients. 

The programme provides fuel discounts to corporate employees and is one of Abecha’s key offerings, alongside other corporate programmes with Citibank and DBS Bank. Following the attack, Abecha quickly shut down the affected servers and hired data protection and cybersecurity specialists to investigate the breach and recommend additional security protocols. The company also filed a police report and informed the Personal Data Protection Commission Singapore (PDPC), which is now investigating the incident. Despite assurances from Abecha, some customers have expressed concern. 

Alson Tang, a public relations professional, voiced his anxiety since he had provided his bank account number when signing up for the discount programme. “Fuel prices are high, and the discount is appealing, but my trust in the organization has been somewhat shaken,” Tang said. Davidson Chua, co-founder of the car-selling aggregator platform Telequotes, called the news “alarming.” While he had not detected any suspicious activity on his credit card, he noted that he might not have checked had he not learned of the breach. “If I hadn’t heard about this, I wouldn’t have checked my credit card transactions, and something could have happened, especially since I don’t use the Abecha Esso fleet card regularly,” Chua said, indicating he would likely cancel his card. 

This incident highlights the importance of stringent cybersecurity measures for companies handling sensitive financial data. The PDPC’s investigation may provide further insights into the breach and any potential regulatory consequences for Abecha.
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Technology
AI AI Apps Artificial Intelligence Data Data Challenges DBS Bank PURE Technology

DBS Bank Reveals Big 'Data Challenges' With AI Use


In a bid to adopt Artificial Intelligence (AI) to its operations, DBS Bank had to face several challenges. While doing the same, however, the company realized that doing so goes beyond just figuring out the training models. Data turned out to be one of those challenges, according to DBS’ chief analytics officer Sameer Gupta. 

The Singapore bank started its path to use AI in 2018 by focusing on four main areas: the creation of analytics capabilities, data culture and curriculum, data upskilling, and data enablement.

The company’s goal was to create a data culture that pushed all employees to always consider how data and AI could assist them in their work as well as the relevant use cases and talent, such as machine learning engineers. It entailed offering a training course that instructed personnel on when and how to use data and when not to.

The bank is working on establishing its infrastructure to encompass AI adoption to its data platform, data management structure and data governance. It established a framework that all of its data use cases must be evaluated. PURE is for Purposeful, Unsurprising, Respectful, and Explainable. According to DBS, these four principles are fundamental in directing the bank's responsible use of data.

With the help of its data platform, ADA, the bank is better able to ensure data governance, quality, discoverability, and security. 

It has been discovered that 95% of the data turned out to be useful and crucial for DBS’ AI-based operations. For a fact, the platform consists of more than 5.3 petabytes of data, with 32,000 datasets including videos and structured data. 

However, Gupta revealed that getting to this point “proved a mammoth task.” He explained that organizing this data and making it discoverable in particular needed a lot of effort, primarily manual and human expertise. It took countless hours to identify the metadata, and there are very few tools available to automate this process.

Taking into account the data that spreads across different systems, "a lot of heavy lifting was needed to bring datasets onto a single platform and make these discoverable. Employees must be able to extract the data they need and the bank had to ensure this was done securely,” he said.

Today, DBS govern more than 300 AI and machine learning program, yielding a revenue uplift of SG$150 million ($112.53 million). Additionally, the company saved SG$30 million ($22.51 million) in 2022 for their efforts in risk mitigation, for example from bettering their credit monitoring. Gupta notes that these AI use cases involve a range of functions, like human resources, legal, and fraud detection.

Moreover, he highlighted the need to ensure that the use of AI applications maintains the PURE principles and Singapore's FEAT principles – serving as a framework for the sector’s AI use. It will also be necessary to evaluate other recognized hazards, such as hallucinations and copyright violations, he said.

He added that the company needs to work on its technical elements, including building mechanisms to monitor AI use and gather feedback in order to analyze the ongoing operation and identify areas of improvement. This will consequently ensure that the organization will learn from its AI application, and will be able to make necessary changes whenever needed.

In regards to DBS’ AI usage for predicting outages, such as the disruptions it witnessed last year, he confirmed that the bank is in fact working in identifying how it can do better, including tapping data analysis. He said there is potential to apply AI, for instance, in operations to spot anomalies and choose the best course of action. He also noted that a variety of circumstances might lead to surges in demand.

DBS is the biggest bank in Singapore and currently employs 1,000 data scientists, engineers, and engineers. It runs 600 AI and machine learning algorithms, in order to facilitate its five million customers spread across the regions of China, Indonesia, and India.

With an increase in revenue to SG$350 million ($262.56 million), the bank's AI projects are targeting to produce additional economic value and cost avoidance benefits this year. In the following three years, it aims to reach SG$ 1 billion ($750.17 million).

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