Singapore Proposes Legislation to Combat Scam Victimization
In a bid to enhance consumer protection against scams, the Singapore Ministry of Home Affairs (MHA) has introduced groundbreaking legislation aimed at empowering the Police to issue Restriction Orders (RO) to banks. This initiative targets individuals at high risk of being scammed, even if they do not yet recognize their vulnerability.
A Response to Rising Scam Trends
The legislation addresses a worrying trend revealed by MHA: in the first half of 2024, a staggering 86% of reported scams involved self-effected transfers, where victims willingly transferred money to scammers. Despite the implementation of sophisticated banking safeguards such as the Kill-Switch and Money Lock, scams like internet love scams and impersonation of government officials continue to plague individuals.
New Measures for Enhanced Protection
To tackle this issue, the proposed bill will enable the Police to temporarily restrict the bank transactions of individuals identified as high-risk. This restriction will include halting money transfers and suspending access to credit facilities such as credit cards and personal loans. By intervening in this manner, the bill aims to prevent potential victims from falling prey to scams.
Balancing Protection and Freedom
MHA emphasizes the importance of balancing individual freedom with effective scam prevention. The legislation will focus specifically on scams conducted through digital or telecommunication channels, thereby excluding scams that involve in-person interactions which may not immediately signal criminal activity. This targeted approach ensures that the measures are both precise and respectful of personal freedoms.
Ongoing Monitoring and Assessment
Under the new bill, individuals deemed at risk will face a 28-day monitoring period. During this time, all their transactions with the seven Domestic Systematically Important Banks (D-SIBs) in Singapore will be closely watched and potentially restricted. The monitoring period can be extended if necessary, based on further risk assessments and investigative actions by the Police.
A Proactive Step Forward
“Protecting our citizens in the digital age requires innovative and proactive measures,” stated an MHA spokesperson. “This bill represents a significant step towards safeguarding our citizens from increasingly sophisticated online scams.”