Scams have become a major problem in Singapore, with thousands of people losing their money to tricksters. In just the first half of 2024, over 26,000 scam cases were reported, leading to losses of more than S$385 million. Many people not only lost money but also suffered stress and emotional pain.
Scammers today use very clever methods like fake websites, pretending to be someone else, and trick investment offers. Because of these advanced tricks, it’s harder for normal people to know what is real and what is fake. Many victims don’t even realize they are being scammed until it’s too late.
To help solve this, the Singapore government introduced a new law called the Protection from Scams Act on January 7, 2025. This law gives police the power to freeze bank accounts that may be involved in scams. The goal is to stop the fraud before the money is stolen and protect people’s savings.
What the New Law is All About
The new anti-scam law was made to fight rising scam cases by stopping fraud before it happens. Unlike old methods that acted only after a scam happened, this law takes action early. It lets the police freeze bank accounts that are at risk, even before the scam is complete.
The law focuses on quick action when someone may be in danger of losing money. It is not used all the time, but only when needed and when other ways don’t work. This makes the law strong but also fair.
Main Points of the Scam Law
Freezing Accounts to Stop Losses
The law allows the police to ask banks to freeze an account if:
- It is being used by scammers.
- The account holder might be falling for a scam.
This freeze is called a Restriction Order (RO). While it blocks risky transactions, people can still use their money for daily needs.
Who Can Be Affected by This Law?
The law mostly helps those who are more likely to be scammed, such as:
- Older people
- People who are not good with digital tools
- People who were scammed before
But really, anyone can be protected if there’s a danger.
The following banks are part of the law from the start:
- DBS Bank
- OCBC Bank
- UOB
- Maybank
- Standard Chartered
- Citibank
- HSBC
Other smaller banks and online financial apps may be included if needed.
How People’s Rights Are Protected
Even though the police can freeze accounts, the law has rules to protect people’s freedom and privacy.
- Time Limit: An RO lasts 30 days. It can be renewed up to 5 times but only for a total of 6 months.
- Appeals: If a person thinks the freeze is unfair, they can appeal and ask for a review.
- Family Role: If the person under RO is old or confused, the police must speak with their family before acting.
- Clear Communication: Banks and police must explain clearly why the account was frozen and give updates.
Keeping a Balance Between Safety and Privacy
Some people worry that the police might get too much power. But the law tries to keep a fair balance by adding safety checks:
- ROs need strong proof before they are issued.
- ROs cannot last more than 6 months.
- People can get a lawyer if they want to fight the freeze.
- An independent group checks if the law is being used properly.
These steps make sure the law protects people but doesn’t abuse power.
Is the Law Working? What Has Changed?
Since the law started, early signs show it is helping. Fewer scam cases are being reported, and less money is being lost.
Ideas from Lawmakers to Improve the Law
Members of Parliament have shared ideas to make the law better:
- Mr. Yip Hon Weng wants bank workers to be trained to spot scams early.
- Assoc. Prof. Jamus Lim suggests a system where a trusted person (like a guardian) can step in to protect people in danger.
- Ms. Ng Ling Ling recommends including cryptocurrency platforms and overseas money services, as scammers use those too.
These ideas may be added to the law in the future.
What’s Next? Long-Term Plans to Beat Scams
The fight against scams isn’t over. Scammers are always changing their tricks, so Singapore is planning new ways to stay ahead:
- Keep Updating the Law: Make changes as scam methods evolve.
- Teach the Public: Campaigns to help people learn how to avoid scams.
- Cover Digital Money: Add laws for cryptocurrencies and online payments.
- Work with Other Countries: Catch scammers who work from outside Singapore.