Unmasking the Scam Epidemic: Singapore's Bold New Law to Curb Financial Fraud

In a bold response to the skyrocketing scam crisis in Singapore, lawmakers have enacted a new law that empowers the police to seize bank accounts and block money transfers from individuals suspected of being scammed. Effective from Tuesday, this legislation, known as the Protection from Scams Act, aims to tackle a pressing challenge faced by authorities, where many victims remain oblivious to the threats, even in the face of warnings.

With reported scam cases in Singapore surging from around 15,600 in 2020 to over 50,000 in 2024, resulting in losses exceeding S$1.1 billion ($860 million), the government has recognized the urgent need for proactive measures. Under this new law, the police can intervene by ordering banks to restrict a potential victim’s access to their funds, overriding their personal judgment about being targeted.

While funds can still be accessed for essential expenses, the police will retain control over transactions for a maximum of 30 days, extendable up to five times, thus allowing them time to assess the situation. Critics, however, voice concerns regarding potential abuses of power and lack of accountability, proposing alternatives such as giving individuals the choice to appoint a trusted person to manage their account instead.

Despite such criticisms, supporters argue that the law is a crucial step in safeguarding citizens from overwhelming financial losses. It emphasizes that any intervention will be executed as a last resort after all other attempts to alert the victim have failed.

The legislation is part of broader efforts already underway, which include features such as the ability for bank users to lock funds in their accounts and the implementation of emergency measures enabling immediate account freezes upon suspicion of fraud. As the battle against scams intensifies, this new law represents a significant escalation in the preventive strategies employed by Singaporean authorities.