Financial scams have been growing all over the world, and Singapore has been hit hard. In just the first half of 2024, the country saw over 26,500 scam cases, causing losses of around S$385.6 million. Victims not only lost their savings but also suffered from emotional pain and stress.
To protect its people, the Singapore government introduced the Protection from Scams Bill on January 7, 2025. This new law gives the police the power to freeze suspicious bank accounts before scammers can steal the money. It is designed to stop scams early and help citizens avoid major losses.
This important step shows Singapore’s strong commitment to fighting financial fraud. The law focuses on quick actions to prevent harm while making sure that individual rights and privacy are respected. With scams becoming smarter and harder to detect, Singapore’s new approach sets a strong example for the rest of the world.
Why Singapore Introduced the Anti-Scam Law
The new anti-scam law came after a sharp increase in scam cases and losses in Singapore. Before this, action was mostly taken after a scam happened. Now, the goal is to stop scams before money is stolen.
The main feature is that the police can freeze any bank account if they believe it is being used for fraud or if the owner is at risk.
This power acts as an emergency tool when other ways to help, like warnings, don’t work. It helps save victims’ money while investigations happen. Singapore designed the law carefully to protect people’s finances without giving up their personal freedoms.
Main Features of the New Scam Protection Law
The Protection from Scams Bill has a few important parts that work together:
- Restriction Orders (RO): Police can tell banks to freeze an account if scams are suspected.
The system lets people still pay for essentials like food and bills while stopping scam-related transactions.
Who Can Have Their Accounts Restricted?
Anyone with a bank account in Singapore could be affected, but special focus is on:
- Senior citizens
- People with low digital skills
- Past scam victims
The law automatically covers accounts in big banks like DBS, OCBC, UOB, Maybank, Citibank, Standard Chartered, and HSBC. Smaller banks and fintech companies can also be included if needed.
Safeguards to Protect Citizens’ Rights
While the law gives strong powers to police, it also has strict rules to prevent misuse:
- Time Limit: Restriction Orders last 30 days, extendable up to six months maximum.
- Appeals: Victims can challenge the freeze if they believe it’s wrong.
- Family Contact: For vulnerable people like elderly victims, families must be consulted.
- Clear Communication: Banks and police must explain why an account was frozen and keep the account holder updated.
These safeguards make sure people are treated fairly while protecting their money.
Protecting Both Safety and Privacy
The government made sure the law doesn’t harm personal freedom. Some safety rules include:
- Only clear evidence or strong suspicion can trigger an account freeze.
- No freeze longer than six months, even for complex cases.
- Right to hire a lawyer if someone wants to fight a freeze in court.
- Independent review panels check regularly if the law is being used correctly.
This helps balance protecting money with respecting citizens’ privacy.
Suggestions from Lawmakers for Better Protection
Although most lawmakers supported the new law, some suggested more improvements:
- Training for Bank Staff: Mr. Yip Hon Weng proposed mandatory scam detection training for bank workers.
- Trusted Administrator Option: Prof. Jamus Lim suggested allowing a trusted person like a guardian to manage finances for vulnerable people.
- Covering Cryptocurrencies: Ms. Ng Ling Ling pushed for adding crypto exchanges and remittance services under the law, as scammers often use them.
These ideas are being reviewed and might become part of future updates to the law.
Plans for Stronger Scam Protection in the Future
Singapore knows that scammers keep changing their tricks. So, the government is planning several long-term actions:
- Regular updates to the law
- Public campaigns to teach people how to spot scams
- New rules for cryptocurrencies and digital money
- Working with other countries to catch scammers across borders
By keeping the system flexible and smart, Singapore hopes to stay ahead of scam threats.