Singapore Law Allows Police to Freeze Scam Victims’ Bank Accounts
Singapore has taken a decisive step in the fight against scams by passing a new law that empowers the police to order banks to restrict the banking transactions of potential scam victims. The Protection from Scams Bill, which was tabled for a second reading by Minister of State for Home Affairs and for Social and Family Development Sun Xueling, aims to address the growing concern of scams in the country.
### The Bill’s Purpose
Under the new law, specified officers, including those from the police and Commercial Affairs Department, will have the authority to issue restriction orders to banks if there is a reasonable belief that account holders are at risk of falling victim to scammers. These restriction orders will suspend money transfers, the use of ATM facilities, and all credit facilities, while still allowing individuals access to their funds for daily living expenses.
### Safeguards in Place
To prevent undue inconvenience to individuals, the Ministry of Home Affairs has put several safeguards in place. Restriction orders will only be issued as a last resort if all other efforts to convince the individual have failed. Additionally, individuals have the right to appeal to the Commissioner of Police against the orders, with the assurance that the process will be expedited by the authorities.
### Addressing Concerns
While the Bill was passed unanimously in Parliament, some Members of Parliament raised concerns about the potential intrusiveness of the law. Suggestions were made for more flexibility in how the restrictions may be applied, such as allowing individuals to designate a trusted administrator to freeze transactions on their behalf.
### Impact and Future Considerations
Although the new law may not completely eradicate scams, it is a crucial step in combating social engineering tactics that lead to significant financial losses over time. The police expect to issue between five to ten restriction orders each month, with a focus on cases involving social engineering scams.
As Singapore continues to evolve its strategies to combat scams, it remains committed to protecting individuals from falling victim to fraudulent schemes. The new law represents a proactive approach to safeguarding the financial well-being of its citizens in an increasingly digital and interconnected world.