Author: CNA
Compiled by Deep潮 TechFlow
DeepChain Overview: Singapore’s Monetary Authority has rarely formed a dedicated task force to address AI fraud and quantum computing threats, requiring banks to complete the migration to quantum encryption by 2030. When regulators begin setting timelines for technological risks 5–10 years in the future, it signals that the traditional financial security system is facing an intergenerational crisis.
On Tuesday, the Monetary Authority of Singapore (MAS) announced it has partnered with the Association of Banks in Singapore (ABS) to establish a task force addressing cybersecurity and fraud risks posed by artificial intelligence and quantum computing to financial institutions.
Image: Skyscrapers in Singapore’s financial district. Source: Channel News Asia.
Chieh Te-chun, Director of the Financial Supervisory Commission, stated at a press conference that the task force will focus on enhancing financial institutions' professional capabilities in using AI for cybersecurity, testing advanced tools, and developing industry guidelines and new response measures for AI-driven threats.
In addition to AI, Xie Dejun highlighted that quantum computing technology poses a "significant risk" to the data security and communications of financial institutions. Although the technology is still in its early stages, the Monetary Authority will release a set of "regulatory expectations" later this year, establishing a phased timeline for financial institutions to address quantum security issues.
"Our goal is to enable financial institutions to achieve quantum safety before the end of this century," he said.
New Threats and Challenges
The Monetary Authority and the Banking Association stated in a joint statement that the establishment of the AI-Driven Network and Technology Risk Task Force (ACT) aims to address emerging risks posed by advanced AI models. The task force has been operational since May this year.
The working group includes senior technology and cybersecurity leaders from the Monetary Authority of Singapore, DBS Bank, OCBC Bank, UOB, Singapore Exchange, NETS, and Bank Computer Services Company.
The Monetary Authority and the Banking Association stated that the working group will promote industry sharing of AI cybersecurity use cases and experiences, enhance cybersecurity knowledge, and strengthen the cybersecurity posture of financial institutions.
Wang Aiwén, Director of the Banking Association, said: "AI is reshaping the landscape of cyber threats, and the financial industry must continue to work together to maintain resilience."
Xie Dejun noted that AI enables phishing scams to achieve personalization and persuasiveness at scale. Friction mechanisms in digital banking transactions still help deter fraudsters, but banks must leverage AI and strengthen controls to better defend against increasingly sophisticated tactics.
The Monetary Authority will review banks' efforts to enhance the effectiveness of their fraud detection models, including their level of AI adoption.
The Monetary Authority is also collaborating with the Government Technology Agency, the police, and five banks to test whether AI models trained on cross-bank and public-private sector data can enhance the overall detection of fraudulent transactions. Results from the testing are expected next year.
Xie Dejun also stated that advanced AI models can identify and exploit system vulnerabilities, posing a threat to financial institutions' cybersecurity defenses.
Advanced AI models can identify more vulnerabilities and shorten the time between discovery and exploitation. “These factors collectively significantly compress the window for patching, testing, and remediation.”
In April, the Monetary Authority issued a notice calling on financial institutions to strengthen their cyber defenses; in July, it required key financial institutions to conduct AI-assisted "red team" tests on their internet-facing critical systems, using advanced AI models to identify potential attack paths.
These requirements are set to be further strengthened. The Monetary Authority will issue regulatory expectations requiring key financial institutions to develop and submit comprehensive assessments and action plans to enhance their defenses against AI-driven cyber threats.
These plans will cover financial institutions’ ability to detect and patch vulnerabilities at scale, test system changes before implementation, and back up, restore, and restart critical systems and services in the event of an outage.
Quantum computing risk
Xie Dejun stated that quantum computing poses a "significant risk" to the data security and communications used by financial institutions in the medium term.
Experts estimate that quantum computing could break current encryption technologies within 5 to 10 years. He noted that transitioning to quantum-safe practices will take time.
"It's never too early to start preparing seriously," he said.
Regarding regulatory expectations to be released later this year, Xie Dejun stated that the Monetary Authority will establish a phased timeline for financial institutions: creating an inventory of crypto assets, prioritizing the migration of vulnerable assets to quantum-safe solutions, and building technical capabilities and governance frameworks to support quantum-safe migration.
Over the past few years, the Monetary Authority has begun laying the groundwork for a quantum-safe financial industry, such as issuing recommendations for transition measures to financial institutions in 2024 and conducting technical work with industry and international partners on cryptographic solutions.
In addition, Xie Dejun stated that Singapore has implemented significant measures and made notable progress in enhancing the resilience of digital financial services against fraud, operational disruptions, and cybersecurity threats.
For example, banks have introduced a "funds lock" feature that freezes assets in a non-transferable digital state. As of May 2026, the total value of funds protected by this feature reached SGD 47 billion, doubling from a year earlier.
In Singapore, the number of fraud cases and the amount of losses both decreased in 2025.
The Monetary Authority has also consistently collaborated with financial institutions to enhance the effectiveness of risk management frameworks and strengthen the resilience of retail payments.
Since August last year, contactless NETS debit payments have remained usable within a certain limit during bank system outages. The Monetary Authority of Singapore is also collaborating with major banks to implement features that allow payments and transfers to continue during system disruptions.