SINGAPORE’S police will be able to issue restriction orders limiting banking transactions by individuals who are at risk of falling victim to scams, if a new Bill is passed.
The Protection from Scams Bill, introduced in Parliament on Monday (Nov 11), seeks to better protect scam targets who do not believe they are being scammed, said the Ministry of Home Affairs (MHA) in a press statement.
Scam cases rose to 46,600 in 2023, nearly five times the 9,500 figure in 2019. These include a high number of cases where victims are manipulated into voluntarily transferring monies to scammers, said MHA.
“In some of these cases, the victims were told by the police, banks or family members that they were being scammed, but they still proceeded with the money transfers,” said MHA.
Currently, the police have no powers to stop victims from willingly transferring their monies to scammers.
The proposed new law will give them such powers. The police will be able to issue restriction orders to banks, which will then restrict the banking transactions of an individual if there is “reasonable belief” that the person will transfer funds to a scammer.
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Under such orders, the individual will be unable to transfer money out of bank accounts, including via mobile and online banking, PayNow and in person over the counter.
Such individuals will also be restricted from using ATM facilities and all credit facilities, such as credit cards.
The orders will be issued by default to seven domestic “systemically important” banks – Citibank, DBS, HSBC, Maybank, OCBC, Standard Chartered Bank and UOB – as they manage most consumer deposits in Singapore, said MHA.
A restriction order can also be issued to banks outside this list if there is “reasonable suspicion” that such banks are involved – for instance, if the individual is making transfers from such banks.
Police officers will make such orders based on an assessment of the facts and circumstances, including information provided by the scam target and family members.
The police officer must have a “reasonable belief” that the individual will transfer money to a scammer and that the order is required for the individual’s protection.
“The restriction order will be issued only as a last resort, after other options to convince the individual have been exhausted,” said MHA.
Maintaining a balance
MHA said the proposed law is scoped to strike a balance between protecting the public from scams and maintaining a sense of personal responsibility.
For example, restriction orders will only be issued for scams: cases of cheating conducted via digital or telecommunication means such as calls and SMSes.
The proposed law does not apply to traditional cheating cases with in-person interaction, such as transfers to an errant contractor or friend.
A restriction order will be in effect for up to 30 days at a time, with up to five more extensions if necessary – for instance, if the police need more time to gather evidence.
The police can cancel the order before the 30 days are up if the individual is assessed as no longer at risk of being scammed.
Individuals can also appeal to the Commissioner of Police against the police’s decision to issue a restriction order upon them. The Commissioner’s decision is final.
“Given that the restriction will remain active pending the assessment of the appeal, MHA will ensure that the appeal process is conducted expeditiously,” said the ministry.
In MHA’s public consultation on the Bill from Aug 30 to Sep 30, one suggestion was that individuals under a restriction order should be allowed to make ATM and over-the-counter withdrawals and GIRO payments, including bill payments to legitimate organisations.
In response, MHA said it aims to minimise inconvenience while ensuring that scammers do not exploit any channels.
Individuals under restriction orders can thus apply to access a fixed amount of money for legitimate reasons such as bill payment and daily necessities. If more is needed, the individual can show proof of this need, such as bills. The police will assess the applications on a case-by-case basis.
MHA noted that the banks said it is not feasible to exempt selected transactions – such as GIRO payments, bill payments and ATM withdrawals – from the restriction order without significant system changes.
“We will continue to work with banks to consider allowing for these exemptions in the future,” said MHA.
The new Bill is the latest in Singapore’s anti-scam efforts.
The government had previously worked with banks to implement a kill-switch mechanism, where customers can freeze bank accounts suspected to be compromised, and a “money lock” feature that sets aside a sum that cannot be transferred out of bank accounts via online means.
The Protection from Scams Bill is expected to be debated at the next Parliament sitting.
