On 7 January 2025, Parliament passed the Protection from Scams Bill, a groundbreaking law granting police the authority to restrict banking transactions of individuals suspected to be scam victims.
The bill, which aims to combat the rising number of scams in Singapore, empowers police and specified officers to issue restriction orders on accounts where there is reasonable belief that funds may be transferred to scammers.
The restriction orders, initially valid for 30 days and extendable up to 180 days, suspend transactions, ATM use, and credit facilities while allowing limited access to funds for daily living.
The intent is to buy time for law enforcement, banks, or family members to intervene and counsel potential victims. The law also includes safeguards such as an appeals process to the Commissioner of Police and automatic lapsing of orders after six months, ensuring interventions remain temporary.
Hazel Poa, Non-Constituency Member of Parliament and Secretary-General of the Progress Singapore Party (PSP), voiced strong support for the bill but raised concerns about its potential impact on victims.
She proposed key refinements to protect victims’ rights, address their emotional needs, and ensure effective implementation.
Protecting financial autonomy
Ms Poa acknowledged the bill’s importance in addressing scams, which cost Singaporeans over S$385.6 million in the first half of 2024. However, she emphasised that the money in bank accounts belongs to the account holders, who should retain the right to decide its use.
To balance intervention with individual rights, she suggested introducing an opt-out mechanism for restriction orders. Such opt-outs, she proposed, should be subject to safeguards to prevent impulsive decisions influenced by scammers. These measures could include:
- A 30-day cooling-off period before the opt-out takes effect.
- Mandatory in-person requests to opt out.
- Compulsory counselling to ensure victims fully understand the risks involved.
These provisions, she argued, would uphold financial autonomy while ensuring victims are not left vulnerable to manipulation.
Addressing emotional challenges of scam victims
Ms Poa highlighted the emotional toll scams can take on victims, particularly in cases such as romance scams, where victims may feel deeply attached to scammers. Restricting their financial transactions could lead to emotional distress or desperation.
To mitigate this, she proposed requiring police to consult social workers before issuing restriction orders. Social workers, she explained, could evaluate the victim’s emotional state and determine whether restrictions would benefit or harm the victim. Such consultations, supported by family members, would provide a holistic assessment, ensuring that interventions align with victims’ best interests.
Practical implementation issues
Ms Poa raised several practical concerns about the bill’s implementation, seeking clarity and proposing adjustments:
- Access to funds for daily living: While the bill allows victims under restriction orders to access money for essential expenses, she questioned whether this process would be automatic or require appeals. She urged police to streamline access to minimise hardship and delays.
- Treatment of joint accounts: Ms Poa sought clarification on whether restriction orders would apply to joint accounts. While such measures could protect co-holders from financial loss, she called for mechanisms to ensure minimal inconvenience to unaffected parties.
- Essential bill payments: Ms Poa echoed public feedback that victims should be allowed to continue GIRO and bill payments during restriction periods. While banks have cited technical limitations, she urged the government to expedite system changes to accommodate such legitimate transactions.
- Withdrawal limits and monitoring: She questioned how police would determine withdrawal limits for victims under restriction orders and whether these funds would also be monitored to prevent transfers to scammers.
Strengthening support for victims
Ms Poa advocated for a more robust framework of emotional and financial support for scam victims. She called for explicit provisions to ensure victims are counselled by social workers, have access to mental health resources, and can navigate the restrictions effectively.
Furthermore, she urged the government to explore public education initiatives to empower Singaporeans against scams. A whole-of-society effort, she said, is essential to reduce the nation’s vulnerability to such crimes.
In her closing remarks, Ms Poa reaffirmed PSP’s support for the bill but emphasised that implementing these safeguards would enhance its effectiveness and fairness. “We hope this law will not only prevent losses but also protect victims’ rights and dignity,” she concluded.
