Singapore Proposes Law to Restrict Banking Transactions of Scam Victims

Singapore’s Ministry of Home Affairs announced on Friday plans to introduce a new law that would empower the police to temporarily restrict the banking transactions of individuals who are suspected targets of scams but refuse to believe they are being deceived.

The proposed legislation comes in response to a high number of scam cases where victims voluntarily transfer money to scammers, despite ongoing public education efforts to prevent such incidents. In the first half of 2024 alone, 86% of reported scams involved self-initiated transfers by victims, according to the ministry.

“The proposed bill seeks to better protect targets of ongoing scams by empowering the police to issue restriction orders to banks to restrict the banking transactions of an individual, if there is reason to believe that he will make money transfers to the scammer,” the ministry explained in a statement.

These restriction orders would cover various banking activities, including preventing money transfers out of a victim’s bank account and blocking access to all credit facilities. The orders would specifically target scams conducted through digital or telecommunication channels, such as calls, SMS, or online communications, and would not apply to in-person fraud cases.

Initially, the restriction order would be effective for 28 days, allowing the police time to investigate further and implement additional measures. Individuals affected by these orders would have the right to appeal to the Minister of Home Affairs. The ministry is currently seeking public feedback on the proposed bill, with a deadline for comments set for September 30.