Singaporean authorities now have power to stop scams

(MENAFN) Starting Tuesday, Singaporean authorities have been granted new powers to seize control of individuals’ bank accounts and block financial transactions if there is suspicion that the person is falling victim to a scam.

This move aims to tackle a persistent challenge faced by law enforcement, where victims often refuse to accept that they are being deceived despite repeated warnings.

The legislation, passed earlier this year, has faced criticism from some lawmakers who view it as an intrusive measure.

Scams in Singapore have worsened significantly, reaching a record loss of $1.1 billion ($860 million) in 2024.

Under the newly enacted Protection from Scams Act, police can instruct banks to restrict potential victims from making transactions, including blocking access to ATMs and credit services, even if the individual does not acknowledge the warnings.

However, account holders retain the ability to access their funds for essential daily expenses and bills, but their use of the money will be subject to police oversight, according to the Ministry of Home Affairs (MHA).

The law allows police to control a suspect account for up to 30 days at a time, with the possibility of extending this period up to five times if necessary.

Critics have voiced concerns about potential abuses of power and the lack of clear accountability. Some members of parliament have proposed options such as allowing citizens to opt out of the law or appointing trusted individuals to manage transaction freezes instead of police authorities.

Supporters argue the law is essential to prevent further financial losses and protect vulnerable individuals.

The MHA stated that decisions will be based on evidence provided by the person involved and their family members, emphasizing that restriction orders will be used only as a last resort after all other efforts to persuade the individual have failed.

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