Scams are rising fast in many countries, and Singapore is no exception. In the first half of 2024 alone, more than 26,000 scam cases were reported, causing a massive loss of S$385.6 million. These scams not only steal money but also cause emotional and mental stress to many victims, especially the elderly and digitally unaware.
To tackle this growing problem, the Singapore government introduced the Protection from Scams Bill on January 7, 2025. This new law gives authorities the power to stop scams before they happen, instead of only acting after money has been stolen. With this law, police can freeze bank accounts that show signs of scam involvement or are at risk.
This step shows Singapore’s serious commitment to fighting scams and protecting people’s hard-earned money. By combining strict actions with safety checks to protect personal rights, the government hopes to prevent future losses and help people feel more secure when using digital banking and payments.
Why Singapore Created the Anti-Scam Law
The new law is a preventive measure to stop scams from happening in the first place. Earlier, actions were mostly taken after a scam occurred. Now, police can act fast if they believe someone is being scammed or if a scammer is using someone’s account.
The law allows for freezing suspicious accounts so that money does not leave the account quickly. It also gives banks and police time to investigate and save potential victims from losing everything. But the law is meant to be used carefully—only as a last resort when other efforts fail or in urgent cases.
Main Parts of the New Scam Law
The law includes several tools to stop fraud while still being fair to the people involved. One of the strongest tools is the Restriction Order (RO). If a bank account looks suspicious or is at risk of being used in a scam, police can tell the bank to freeze the account.
Transactions Affected Under Restriction Order
This approach helps stop large money losses while still allowing access to funds for basic needs.
Who Might Receive a Restriction Order?
The law can be applied to any personal bank account in Singapore. However, it mostly focuses on:
- Seniors
- People with low digital knowledge
- Previous scam victims
Still, anyone can be protected under this law if their account shows warning signs of being targeted.
Banks Automatically Covered
- DBS
- OCBC
- UOB
- Maybank
- Standard Chartered
- Citibank
- HSBC
New or smaller banks and digital financial firms can also be added if they are seen as risky.
How People’s Rights Are Protected
Even though the law gives more power to the police, it also includes safeguards to protect individual rights and avoid abuse of power.
- Time Limit: ROs last 30 days and can be renewed up to 5 times (max 6 months).
- Appeals: Anyone under an RO can file an appeal quickly.
- Family Involvement: In cases with elderly or unaware users, the police must consult close family before freezing the account.
- Clear Communication: Banks must explain why an account was frozen and update the affected person regularly.
Balancing Safety and Privacy
Some people are concerned about the government having the power to freeze bank accounts. But the law includes steps to ensure fairness:
- Strict Checks: ROs need real evidence or strong suspicion.
- No Permanent Freezes: Maximum freeze is 6 months.
- Legal Support: People can get legal help if they wish to fight the RO.
- Independent Review: Independent groups will check how the law is being used.
These steps aim to balance public safety with personal freedom.
Has the Law Worked?
Early results show that the law is already making a positive impact. Fewer scam cases are being reported, and less money is being lost overall.
This shows that Restriction Orders are helping prevent big financial losses.
Suggestions from Lawmakers
The new law got strong support in Parliament, but some MPs suggested ways to improve it further:
- Training Bank Staff: Mr. Yip Hon Weng (PAP) said banks should train employees to spot scam signs early.
- Trusted Guardians: Prof. Jamus Lim (WP) suggested letting a trusted person act for victims, especially the elderly.
- Crypto Coverage: Ms. Ng Ling Ling (PAP) wants the law to include cryptocurrency and global money transfer services since scammers often use them.
The government is reviewing these suggestions for future updates.
Next Steps in Fighting Scams
The fight against scams is ongoing. Scammers are always coming up with new tricks, so Singapore is planning more actions:
- Update Laws Regularly: Make sure laws stay up-to-date.
- Teach the Public: Run campaigns to teach people about common scams.
- Cover Digital Assets: Include cryptocurrency protections.
- Work with Other Countries: Catch international scammers through teamwork.
These actions will help Singapore stay strong in its fight against fraud and protect its citizens’ savings.