Police can control bank accounts of scam victims in S’pore from July 1

The police will now have powers to control the bank accounts of stubborn scam victims in Singapore who insist they are not being scammed despite evidence showing otherwise.

With the Protection from Scams Act coming into effect on July 1, the police will be allowed to issue restriction orders (ROs) to banks, which will then limit the banking transactions of an individual’s accounts.

The Act, which was passed in Parliament on Jan 7, will enable the police to better protect scam victims by stopping them from transferring money into other accounts, using ATMs, and accessing credit services. In-person and over-the-counter transactions will also be restricted for them.

Those subjected to an RO will still have access to money for legitimate reasons, including paying bills and buying daily essentials like groceries.

On June 30, the Ministry of Home Affairs (MHA) said ROs will be issued if it is believed these scam victims will transfer money to scammers.

The police said one of the biggest challenges they face is convincing people they are victims of a scam.

Without the Act, the police cannot stop victims from doing what they want with their money, even if they are suspected of being scammed.

MHA said ROs will be issued only as a last resort, after other options to convince victims have been exhausted.

The decision to issue an RO will be made by a police officer, based on an assessment of the facts and circumstances of each case, said the ministry.

Once the decision is made, ROs will be issued by default to the seven major retail banks here – OCBC Bank, DBS Bank, UOB, Maybank, Standard Chartered, Citibank and HSBC – but can also be issued to other banks.

ROs will take effect for up to 30 days at a time and can be extended up to five times, which means they can last for up to six months.

The police can cancel an RO ahead of the 30-day limit if the individual is assessed to be no longer at risk of being scammed. Appeals against the RO can be made to the Commissioner of Police, whose decision will be final.

MHA had said 10 or more ROs could be issued monthly, based on previous cases in which the police were unsuccessful in intervening.

In 2024, scam victims in Singapore lost $1.1 billion, a record high in a single year.

The police saw the highest number of scam reports in 2024, with 51,501 cases compared with 46,563 cases the previous year.

Overall, victims in Singapore have lost more than $3.4 billion to scams since 2019.

In more than three in four cases in 2024, victims had voluntarily transferred money without scammers gaining direct control of their bank accounts.

The police said these victims were manipulated into transferring money through deception and social engineering.

The most common ruse in 2024 was e-commerce scams, with 11,665 reported cases. Victims of investment scams saw the highest amount of losses, with $320.7 million lost to such scams.

Nadine Chua is a crime and court journalist at The Straits Times.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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