Singapore: Singapore has enacted a new law that empowers police to seize control of a person’s bank account and block financial transactions if they suspect the individual is being scammed, even if the potential victim disagrees.
The Protection from Scams Act, which came into effect, enables authorities to order banks to halt transfers, restrict ATM and credit access, and control the use of funds, all to protect individuals believed to be at risk.
The Ministry of Home Affairs (MHA) clarified that affected individuals will still be able to access money for legitimate daily expenses, but only under police discretion. These constraints can remain in place for up to 30 days, with a possibility of five extensions if further time is required for investigations.
Authorities say the move addresses a recurring problem, victims who remain unconvinced they are being duped, even after repeated warnings.
MHA stated that, “The restriction order will only be issued as a last resort, after other options to convince the individual have been exhausted,” adding that decisions will be guided by the facts presented by the individual and their family members.
Singapore has seen scams surge to an all-time high, with losses hitting S$1.1 billion ($860 million) in 2024 alone. Reported scam cases have ballooned from around 15,600 in 2020 to more than 50,000 this year.
The most prevalent scams include job offers, investment traps, e-commerce fraud, and a growing number of internet romance scams, where con artists emotionally manipulate victims into sending money after months of online engagement.
While the law has received backing from officials as a necessary tool to protect the public, it has not been without controversy. Some members of Parliament criticised the legislation as overly intrusive, raising concerns about accountability and the potential for misuse.
Suggestions were made to let individuals opt out or appoint a trusted party to handle transaction freezes, but the law was passed in its original form earlier this year.
This law adds to a growing arsenal of anti-scam measures introduced in recent years. In 2023, banks in Singapore allowed users to lock portions of their funds from digital transfers. Many financial institutions also offer an emergency ‘kill switch’ for customers to freeze their accounts instantly if fraud is suspected.
Authorities say the new legal framework reinforces Singapore’s commitment to stemming financial crime, even if it means temporarily limiting personal financial autonomy to save lives and livelihoods.
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