Focus on the BIG picture.
Wednesday, Jul 02, 2025
Outside the box.
Singapore Police Empowered to Seize Bank Accounts to Combat Scams
New law allows authorities to block transactions and seize control of funds under suspected scam scenarios.
Singapore has implemented a new law that grants police the authority to seize control of an individual's bank account and block money transfers if there is a suspicion that the person is being scammed.
This legislation, known as the Protection from Scams Act, took effect on Tuesday and aims to combat the growing issue of scams in the city-state.
The legislation was passed earlier this year in response to a significant increase in scams, with reported losses escalating to a record S$1.1 billion (approximately $860 million) in 2024.
Authorities have noted that many victims remain in denial about their situation, often disregarding warnings about potential scams.
Under the new law, police can order banks to block transactions for a person deemed to be at risk of falling victim to a scam.
This includes restrictions on the use of ATMs and credit services.
The decision can be made by a police officer, even if the individual in question does not recognize the signs of a scam.
While the account owner retains access to their funds for essential costs like daily expenses and bill payments, such access is subject to the police’s discretion.
The Ministry of Home Affairs (MHA) in Singapore has outlined that a potential victim's accounts can be under police control for up to 30 days, with the option to extend this period for a maximum of five additional extensions if necessary.
Critics of the legislation have voiced concerns regarding potential overreach and lack of accountability, prompting discussions in Parliament about the possibility of allowing individuals to opt out of the law or designate a trusted person to manage their transactions instead of law enforcement.
Proponents of the law argue that it is essential for protecting vulnerable individuals from substantial financial losses.
The MHA emphasized that the restrictions would be utilized as a last resort, following attempts to alert the individual to the scam.
Reported scam cases in Singapore have increased rapidly, rising from approximately 15,600 incidents in 2020 to over 50,000 in 2024.
Predominant scams reported include job and investment scams, as well as e-commerce fraud, wherein victims pay for goods that are never delivered.
Another alarming trend is the rise of internet love scams, where perpetrators establish online relationships over time, only to manipulate victims into sending money.
This recent law is part of a broader set of measures aimed at combating scams in Singapore.
Since 2023, various banks have offered features that allow users to temporarily lock portions of their funds to prevent digital transfers.
Additionally, most financial institutions provide an emergency 'kill switch' enabling customers to freeze their accounts instantly if they suspect fraudulent activity.
This legislation, known as the Protection from Scams Act, took effect on Tuesday and aims to combat the growing issue of scams in the city-state.
The legislation was passed earlier this year in response to a significant increase in scams, with reported losses escalating to a record S$1.1 billion (approximately $860 million) in 2024.
Authorities have noted that many victims remain in denial about their situation, often disregarding warnings about potential scams.
Under the new law, police can order banks to block transactions for a person deemed to be at risk of falling victim to a scam.
This includes restrictions on the use of ATMs and credit services.
The decision can be made by a police officer, even if the individual in question does not recognize the signs of a scam.
While the account owner retains access to their funds for essential costs like daily expenses and bill payments, such access is subject to the police’s discretion.
The Ministry of Home Affairs (MHA) in Singapore has outlined that a potential victim's accounts can be under police control for up to 30 days, with the option to extend this period for a maximum of five additional extensions if necessary.
Critics of the legislation have voiced concerns regarding potential overreach and lack of accountability, prompting discussions in Parliament about the possibility of allowing individuals to opt out of the law or designate a trusted person to manage their transactions instead of law enforcement.
Proponents of the law argue that it is essential for protecting vulnerable individuals from substantial financial losses.
The MHA emphasized that the restrictions would be utilized as a last resort, following attempts to alert the individual to the scam.
Reported scam cases in Singapore have increased rapidly, rising from approximately 15,600 incidents in 2020 to over 50,000 in 2024.
Predominant scams reported include job and investment scams, as well as e-commerce fraud, wherein victims pay for goods that are never delivered.
Another alarming trend is the rise of internet love scams, where perpetrators establish online relationships over time, only to manipulate victims into sending money.
This recent law is part of a broader set of measures aimed at combating scams in Singapore.
Since 2023, various banks have offered features that allow users to temporarily lock portions of their funds to prevent digital transfers.
Additionally, most financial institutions provide an emergency 'kill switch' enabling customers to freeze their accounts instantly if they suspect fraudulent activity.
