A regular round-up of compliance news, such as fines, permissions, new technology solutions to make tracking risks easier, and other developments.

Cybercriminals are exploiting fears of COVID-19 to scam the public with promises of cures or other solutions, an Australian watchdog has warned. The story is particularly poignant because so many people rely more on the internet than ever to work and contact people socially amid the disruption. 

The Australian Competition and Consumer Commission’s “Scamwatch” page reports that it has received 94 reports since 1 January of frauds about coronavirus, and those figures are growing. 

“Scamwatch has received multiple reports of phishing scams sent via email or text message that claim to be providing official information on coronavirus but are attempts to try and obtain personal data,” the regulator said in a statement late last week. 

“Unfortunately, scammers are using the uncertainty around COVID-19, or coronavirus, to take advantage of people,” ACCC Deputy Chair Delia Rickard said.

Other scams include people receiving misinformation about cures for coronavirus and investment scams claiming coronavirus has created opportunities to make money, it said.

“We’ve had a wide variety of scams reported to us, including fake online stores selling products claiming to be a vaccine or cure for coronavirus, and stores selling products such as face masks and not providing the goods,” Rickard said.

(Editor’s comment: The wealth management industry must be vigilant about fraudsters playing on such worries to sell products and services to clients, and ensure their advisors and clients maintain good “digital hygiene” to avoid being hit. It would be ironic if, as a result of so much remote working brought on by the pandemic, cybersecurity discipline were to fall short. Recent events show that a strong internet is crucial.)

Monetary Authority of Singapore
Singapore and Australia have agreed to tighten data connectivity in financial services between these countries, removing barriers to data storage costs, the Monetary Authority of Singapore said earlier this week.

The jurisdictions have signed the Singapore-Australia Digital Economy Agreement. The pact ensures that financial institutions operating in the countries can transfer information across borders more easily.

Singapore and Australia have also committed to ban requirements for data localisation, which are “an unnecessary barrier to trade and can drive up the cost of storing data for all businesses”, MAS said. Both countries will allow financial institutions to choose where their data is stored.