New bill aims to allow police to restrict banking transactions of scam victims, even against their will.
New Protection from Scams Bill
Singapore introduced a revolutionary Protection from Scams Bill in Parliament on November 11, 2024, aimed at preventing scam victims from unknowingly transferring funds to scammers. The Bill proposes empowering the police to issue Restriction Orders (ROs) to banks, limiting victims’ access to their funds for up to six months.
Scope and Enforcement
Under this law, police can restrict a victim’s banking transactions, including money transfers, ATM withdrawals, and use of PayNow, if they believe the victim is at risk of continuing to send money to scammers. The restriction would be issued to major banks, including OCBC, DBS, UOB, Maybank, Standard Chartered, Citibank, and HSBC.
The ROs would remain effective for 30 days, extendable for up to six months, and victims can appeal the order. However, victims would still be able to access their funds for essential purposes like bill payments or grocery shopping by applying to the police for specific amounts.
Addressing Scam Challenges
Despite numerous anti-scam campaigns, scams have surged, with losses reaching $385.6 million in the first half of 2024. The police’s biggest challenge has been convincing victims they are being scammed, as many are adamant they are not. The proposed law targets victims who resist intervention, especially in digital scams involving large sums.
Public and Expert Reactions
The proposal has sparked debates over privacy and individual rights, with some expressing concerns about governmental overreach. However, a public consultation showed broad support, with 90% of respondents in favor of the Bill. Some suggested extending the law to cover cryptocurrency and remittance services in the future.
Impact on Scam Prevention
The Bill seeks to combat the rising tide of scams by giving authorities more authority to intervene before victims lose substantial amounts. While some oppose the idea of restricting individuals’ autonomy, authorities argue that this approach is necessary to curb the damage caused by manipulative scams.
