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The Central Provident Fund Board (CPFB) has announced a significant reduction in the daily CPF withdrawal limit in a bid to enhance financial security and counter rising scam incidents. Effective September 25, the maximum amount of CPF money that can be withdrawn online per day will be lowered from $200,000 to $50,000.
The decision follows a marked increase in scam activities involving CPF withdrawals. Data from the first half of 2024 reveals a record 26,500 scam cases, resulting in a staggering $385.6 million in losses. Although CPF-related cases constitute less than 0.1% of the total, with losses amounting to at least $2.5 million, the CPFB aims to mitigate the risks further.
Previously, CPF members aged 55 and above could adjust their daily withdrawal limit up to $200,000 online, subject to enhanced authentication measures and a 12-hour cooling period. This setup allowed members to temporarily increase their withdrawal limits for significant transactions but also provided a window to address unauthorized changes. Members could also activate the CPF Withdrawal Lock to set their limit to $0 instantly.
Under the new measure, members planning to withdraw more than $50,000 will need to spread their withdrawals over multiple days. For instance, a member with a $180,000 balance wishing to withdraw the entire amount would now do so in increments of $50,000 over three days, and the remaining $30,000 on the fourth day. This approach is designed to reduce the risk of losing large sums in a single day if targeted by scammers. The CPFB advises members to plan their withdrawals in advance and make use of the CPF Withdrawal Lock if they suspect any fraudulent activity. Additionally, members who wish to receive their CPF withdrawals via PayNow must complete a one-time update of their PayNow NRIC-linked bank account on the CPF website, which will also be subject to a 12-hour cooling period and enhanced authentication.
While a majority of CPF members maintain a daily withdrawal limit below $50,000, the CPFB has assured that those currently set above this threshold will be notified ahead of the adjustment. The move reflects the CPFB’s ongoing efforts to balance convenience with robust security measures.
The CPFB continues to collaborate with banks and other government agencies to monitor scam trends and adjust safeguards as needed. Members are encouraged to stay vigilant and promptly report any suspected scams to both their banks and the CPF Board.For more information on adjusting withdrawal limits and other related measures, members can visit the CPF website or contact the CPFB directly.