A new law allows police to freeze bank accounts of scam victims
Singapore passed a new law on January 7 allowing police to freeze bank accounts in attempts to combat the rising tide of financial scams. The Protection from Scams Bill grants law enforcement the authority to restrict transactions when they believe an individual is about to transfer money to fraudsters. The measure is designed to act as a last line of defense, preventing victims from losing their savings to increasingly sophisticated scams.
Financial fraud has surged in Singapore, with 26,587 reported scam cases in the first half of 2024 alone, leading to losses of S$385.6 million (US$283.34 million). These figures reflect a growing crisis, with total losses reaching S$651.8 million in 2023 and a record S$660.7 million in 2022. Many victims remain unaware they are being deceived, even after warnings from banks, police and family members.
Under the new law, police officers from the Commercial Affairs Department can issue restriction orders to banks if they determine a victim is at high risk of transferring funds to a scammer. These orders temporarily freeze transactions, ATM withdrawals and credit facilities, and are intended to give authorities time to intervene and convince the victim of the fraud. While accounts remain restricted, individuals will still have access to funds for essential expenses.
The restriction orders initially last 30 days but can be extended up to five times if necessary. They apply by default to seven major retail banks in Singapore, including DBS, OCBC, UOB, Maybank, Standard Chartered, Citibank and HSBC. Other financial institutions, including foreign banks, may also be restricted if there is reasonable suspicion of fraudulent activity.
Government officials highlight that the law seeks to balance protecting individuals and respecting financial autonomy. Victims can appeal restriction orders, and safeguards ensure interventions are used only when other efforts to prevent fraud have failed. Some lawmakers have raised concerns about the potential overreach of police powers, suggesting alternative measures such as allowing individuals to designate trusted family members to monitor or approve transactions. Others argue that expanding restriction orders to cryptocurrency exchanges and remittance companies could further strengthen protections as scammers shift their tactics.
Authorities acknowledge that while the law will not eliminate scams entirely, it will serve as a critical tool in tackling high-value fraud cases. Police expect to issue between five and ten restriction orders per month, targeting cases where victims stand to lose substantial sums. While this number is small compared to the tens of thousands of scam cases reported annually, officials believe the law will prevent significant financial harm to individuals who might otherwise be left with zero balance.
