Money

S’pore’s Protection from Scams bill will let police freeze accounts

0
Please log in or register to do it.
S’pore’s Protection from Scams bill will let police freeze accounts



Singapore has plans to introduce a new law called the Protection from Scams bill in the coming months, according to a statement from the Ministry of Home Affairs on August 30.

As the name suggests, the proposed law aims to fight scams in the country. How? By letting the police freeze bank accounts and credit cards without warning if they believe someone is being targeted by scammers.

Specifically, the police will be able to issue Restriction Orders (ROs) to banks, which then enables them to temporarily restrict banking transactions of individuals targeted by ongoing scams who continue to transfer money despite warnings.

If an individual has been assessed to warrant a RO, the police will issue the RO to all the seven Domestic Systematically Important Banks (D-SIBs) in Singapore. This is in cases where the individual has banking accounts with more than one bank.

This bill is a response to the rise in scam cases, where victims transfer money to fraudsters despite safeguards like the current “kill switch”.

A shocking 86% of scams reported in early 2024 were “the result of self-effected transfers”. Basically, they involved victims willingly sending money to scammers.

The law will target scams done remotely, such as via phone, text, or online. Accounts could be frozen for 28 days, or even longer if needed.

But don’t worry—those affected can still ask the police for money to pay bills and essential expenses. Plus, if you think the freeze is unfair, you can appeal to the Ministry of Home Affairs.

Feedback welcomed

While the intentions of the bill are clear and positive, the introduction of the law could lead to differing public opinions. While some may understand and welcome it as a necessary tool to prevent scams, some may see it as a form of government overreach.

However, the MHA emphasised that the ROs will only be issued as a last resort, after other efforts to convince scam targets to stop the transfers have failed.

On another note, the bill could potentially affect people’s trust in banks, as they may feel uneasy about the notion that their funds could be frozen without notice. They may turn to decentralised solutions such as cryptocurrencies, which may end up resulting in fraud too.

From now until the end of September, the ministry is seeking public feedback on the new bill. How Singapore decides to move forward with this proposed bill may set the stage globally for similar safeguards against scams.

  • Learn more about the Protection from Scams bill here.
  • Read other articles about Singapore here.

Featured Image Credit: DBS Bank



Source link

Make your listening experience luxurious, buy these premium headphones | Personal Finance
Singer Sarah Brightman starring in musical Sunset Boulevard, coming to Singapore in February 2025