Police in Singapore have recently implemented a new law that allows them to take control of an individual’s bank account and prevent money transfers if they suspect the person is being scammed. This measure, which came into effect on Tuesday, is aimed at addressing the common issue of victims refusing to believe they are being scammed despite warnings from authorities.
The law, known as the Protection from Scams Act, was passed earlier this year by lawmakers in response to the escalating problem of scams in Singapore. In 2024 alone, the island-state saw a record S$1.1 billion ($860m; £630m) lost to scams.
Under this new law, police have the authority to instruct banks to block a potential victim from making transactions if they have reason to believe the individual is being targeted by scammers. Additionally, police can also restrict a potential victim’s use of ATMs and credit services.
Even if the potential victim does not acknowledge the warnings of being scammed, a police officer can make the decision to control the person’s bank account. However, the account owner will still have access to their funds for essential expenses like daily bills and purchases, but all transactions will be subject to police approval.
According to Singapore’s Ministry of Home Affairs (MHA), the police can maintain control over a potential victim’s bank account for up to 30 days, with the option for five extensions if necessary. Critics of the law have expressed concerns about accountability and the potential for abuse of power. Some members of parliament have suggested alternatives, such as allowing individuals to opt out of the law or nominate someone else to freeze their transactions instead.
Despite these concerns, proponents argue that the law is crucial in reducing the significant financial losses suffered by scam victims and safeguarding them from further harm. The MHA emphasizes that the decision to control a person’s bank account will be based on information provided by the individual and their family members, and will only be implemented as a last resort after all other options have been exhausted.
The number of reported scams in Singapore has been on the rise, increasing from around 15,600 cases in 2020 to over 50,000 cases in 2024. Common scams in the country include job and investment scams, e-commerce fraud, and internet love scams where victims are deceived into sending money after forming online relationships with fraudsters.
This new law is the latest in a series of anti-scam measures introduced by Singaporean authorities. Since 2023, bank users have had the option to lock up a portion of their funds to prevent digital transfers, and most banks offer an emergency “kill switch” that allows customers to freeze their accounts immediately if they suspect fraudulent activity.
Overall, the new law aims to protect individuals from falling victim to scams and prevent substantial financial losses in Singapore. As authorities continue to combat the growing threat of scams, it is essential for individuals to remain vigilant and take precautions to safeguard their finances.
