Singapore Proposes Anti-Scam Law to Enhance Protection Against Fraud
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Loading... - Aiguo Wang
- 11 Nov 2024
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Singapore's police may soon have the authority to issue restriction orders that limit banking transactions for individuals deemed at risk of falling victim to scams, pending the passage of a new Bill. The Protection from Scams Bill, introduced in Parliament on November 11, aims to better safeguard potential scam targets who may not recognize that they are being scammed, according to a statement from the Ministry of Home Affairs (MHA).
Scam cases in Singapore have surged dramatically, with reports indicating 46,600 cases in 2023, nearly five times the 9,500 cases recorded in 2019. Many of these incidents involve victims who are manipulated into voluntarily transferring money to scammers. The MHA noted that even when victims are warned by police, banks, or family members about the potential scam, they often proceed with the transactions.
Currently, police lack the authority to prevent victims from willingly transferring their funds to scammers. The proposed legislation would empower them to issue restriction orders to banks, which would then limit the banking transactions of individuals if there is a "reasonable belief" that they are about to transfer funds to a scammer. Under these orders, individuals would be unable to transfer money out of their bank accounts through mobile and online banking, PayNow, or in-person transactions. They would also be restricted from using ATM facilities and credit services.
The restriction orders would be issued by default to seven major banks in Singapore—Citibank, DBS, HSBC, Maybank, OCBC, Standard Chartered Bank, and UOB—since these institutions manage the majority of consumer deposits. Orders could also be issued to other banks if there is reasonable suspicion of involvement in the scam.
Police officers would assess the need for such orders based on various factors, including information from the scam target and their family members. The MHA emphasized that these orders would only be issued as a last resort after other options to convince the individual have been exhausted.
The proposed law aims to strike a balance between protecting the public from scams and maintaining personal responsibility. It specifically targets scams conducted through digital or telecommunication means, excluding traditional cheating cases that involve in-person interactions.
A restriction order would remain in effect for up to 30 days, with the possibility of five extensions if further investigation is needed. The police could cancel the order early if the individual is deemed no longer at risk. Individuals would also have the right to appeal the issuance of a restriction order to the Commissioner of Police, whose decision would be final.
In response to public consultation on the Bill, some suggested that individuals under restriction orders should be allowed to make certain transactions, such as ATM withdrawals and bill payments. The MHA stated that while it aims to minimize inconvenience, it must also ensure that scammers do not exploit any channels. Individuals under restriction orders could apply for access to a fixed amount of money for legitimate expenses, with applications assessed on a case-by-case basis.
The new Bill is part of Singapore's ongoing efforts to combat scams. Previous initiatives include a kill-switch mechanism that allows customers to freeze potentially compromised bank accounts and a "money lock" feature that sets aside funds that cannot be transferred online. The Protection from Scams Bill is expected to be debated in the next Parliament sitting.
