Singapore targets stubborn scam victims with new law to restrict financial transactions

SINGAPORE, Nov 11 — Facing a surge in scam cases, Singapore is proposing a landmark law allowing police to control the bank accounts of scam victims who persist in sending money to fraudsters, despite clear evidence showing they are being scammed.

The Protection from Scams Bill, tabled in Parliament on November 11, would authorise police to issue restriction orders (ROs) to banks, limiting certain financial transactions for individuals suspected of falling prey to scams, according to a report in The Straits Times today.

The financial restrictions cover money transfers, use of ATM facilities as well as all credit facilities. Other transactions affected include PayNow and in-person over-the-counter transactions.

By default, the restriction orders (ROs) will be applied to the seven major retail banks in Singapore — OCBC Bank, DBS Bank, UOB, Maybank, Standard Chartered, Citibank, and HSBC — though they can also be issued to other banks.

The ROs will remain in effect for up to 30 days, with the possibility of being extended up to five times, potentially lasting a maximum of six months.

If the individual is determined to no longer be at risk of being scammed, the police can revoke the RO before the 30-day period ends. Appeals against the RO can be filed with the Commissioner of Police, whose ruling will be final.

The ROs will be applied solely to scam cases involving primarily digital and telecommunication methods, such as phone calls and text messages.

They will not be used for more traditional scams involving in-person interactions, such as those with unscrupulous renovation contractors or family members and friends.

The Ministry of Home Affairs (MHA) emphasised that the RO will only be issued as a last resort, after all other attempts to persuade the scam victim have been exhausted.

Singapore police have said that one of their biggest challenges is convincing people that they are scam victims.

At present, the police are unable to stop a victim from managing their money as they wish, even if there are suspicions that they are being scammed.

With scam-related losses reaching record highs — over S$385.6 million (RM1.3 billion) lost in just the first half of 2024 — the new law aims to curb the drain on personal and national finances.

Minister of State for Home Affairs Sun Xueling highlighted the urgency, noting, “Singapore is losing some $2 million to scams daily,” during a recent speech.

The proposed law is part of a growing arsenal of anti-scam measures in Singapore, which include the “I can ACT against scams” campaign and a kill switch allowing customers to freeze their accounts.

Despite these efforts, 86 per cent of reported scams in early 2024 involved voluntary transfers from victims to scammers.

While over 90 per cent of public feedback has been supportive, some citizens raised concerns over the potential for government overreach.

The Ministry of Home Affairs reassured the public that ROs would only be issued as a last resort and indicated openness to expanding the scope to cover cryptocurrency and remittance services if necessary.