Singapore’s Ministry of Home Affairs (MHA) announced plans to introduce new legislation that would grant police the authority to temporarily restrict the banking transactions of individuals targeted by scams. This move comes in response to a concerning rise in the number of scam cases involving victims who, despite warnings, voluntarily transfer money to scammers.
The proposed law is designed to address a growing issue in Singapore where, despite existing safeguards and extensive public education efforts, a significant number of scam cases persist. In the first half of 2024, 86% of reported scams involved victims who willingly transferred money to scammers, often under the belief that they were not being deceived. These incidents have highlighted the limitations of current measures and the need for more robust interventions.
Under the proposed law, police would be empowered to issue Restriction Orders (ROs) to banks, effectively suspending certain banking activities for individuals believed to be at risk of falling victim to a scam. These ROs would cover a range of banking facilities, including money transfers from the victim’s accounts and the use of credit facilities. The aim is to prevent further financial losses by stopping potential transactions before they can be completed.
The law would specifically target scams conducted via digital or telecommunication channels, such as phone calls, text messages, or online communications. Cases involving in-person interactions, such as those with errant contractors or personal acquaintances, would not fall under the scope of this legislation. The decision to issue an RO would be based on a thorough assessment by the police, who would consider the specific circumstances of each case.
If enacted, the Restriction Orders would initially be valid for 28 days, providing the police with time to investigate further and engage with the individual and their family. During this period, the police would work to gather additional evidence or persuade the individual to adopt necessary precautions. Should the risk of a scam persist, the RO could be renewed for additional 28-day periods as needed.
The Ministry of Home Affairs emphasized that Restriction Orders would only be used as a last resort, after other efforts to convince the individual had been exhausted. An appeal process would be available, allowing individuals to challenge the issuance of an RO through the Minister for Home Affairs.
The ministry is seeking public feedback on the proposed bill until September 30, 2024. This consultation period is intended to gather input from various stakeholders to ensure that the legislation is both effective in protecting potential scam victims and balanced in its approach to individual freedoms and responsibilities.
