Authorities in Singapore Granted Police Authority to Immediately Freeze Bank Accounts to Combat Financial Scams
In a bid to combat the growing threat of financial scams, Singapore has introduced the Protection from Scams Act 2025, which includes Restriction Orders (ROs) that empower the police to freeze or limit banking transactions of individuals suspected to be victims of ongoing scams.
The new law aims to protect scam victims by preventing them from transferring money, withdrawing cash via ATMs, or using credit facilities that could facilitate further financial loss.
### Key Features of the Restriction Orders (ROs)
The police can issue ROs to banks to temporarily block or limit a victim's banking and credit transactions, including stopping money transfers, ATM withdrawals, and use of credit services, as well as in-person and over-the-counter transactions.
An RO is valid for up to 30 days initially and can be extended up to five times, allowing a total restriction period of up to six months. The orders are only issued as a last resort after attempts to convince the individual to stop the transaction voluntarily have failed.
Despite the restrictions, affected individuals can still access funds for legitimate needs such as daily expenses and bill payments, but these withdrawals require police approval on a case-by-case basis. Victims under ROs can also request emotional support and be connected with victim care officers through the investigating police officers.
### Implications of the Protection from Scams Act 2025
The new law addresses a critical issue in scams where victims voluntarily transfer money to scammers, a situation accounting for over 75% of cases in Singapore. In 2024, scam victims in Singapore lost about USD 1.1 billion, a record high. These measures aim to reduce such losses by intervening early.
The law balances protection with personal freedom by making ROs temporary, allowing necessary access to funds, and setting clear limits on their duration. It gives police a legal framework to collaborate with banks swiftly to intervene in scam-related transactions.
Minister Sun Xueling highlighted that these orders are necessary to stop scenarios where victims lose their life savings before they can be warned. Scammers are shifting tactics toward digital channels like e-wallets and cryptocurrency in Singapore.
In addition to the ROs, the Singaporean government has also established the ScamShield app as a measure to curb scams proactively. Operation First Light 2024 resulted in the freezing of thousands of suspect accounts globally.
The Anti-Scam Division, established in 2021, deploys bank staff within police units for rapid intervention. Scam cases and financial losses in Singapore have surged, rising from 46,563 incidents in 2023 to 51,501 cases in 2024, reaching record loss figures of over S $1.1 billion.
In summary, Singapore's new Restriction Orders under the Protection from Scams Act 2025 provide a robust, carefully balanced tool to proactively protect scam victims from further financial harm by temporarily freezing or restricting their banking activities while ensuring access to essential funds and support services.
- The Protection from Scams Act 2025 in Singapore also includes provisions for policy-and-legislation changes, aiming to address the growing issue of scams in business and finance sectors.
- The implications of this new law extend beyond political boundaries, as it sets an example for other countries to follow in adopting strong policies to combat financial scams and protect general-news consumers.
- The introduction of the Protection from Scams Act 2025 and its Restriction Orders (ROs) is a significant step in the political environment, demonstrating a commitment to ensuring education and finance remain safe and secure for all citizens.
