Singapore banks on 'world first' to stop cyber scams

Singapore has passed legislation giving police unprecedented powers to take control of a bank account if there is proof a person is being scammed.

The law, passed on Tuesday, is believed to be the first of its kind.

It allows police and officers of the commercial affairs department to order bank transactions stopped if there is compelling evidence an account holder is about to transfer money to a scammer, even if willingly.

Those issued with such orders will have their bank accounts, ATM access and credit facilities suspended, but can withdraw funds for daily living expenses.

"The intent is to buy the police more time to engage and convince the individual that he is being scammed, including through enlisting the help of his family members," Minister of State for Home Affairs Sun Xue Ling said.

"The restriction order will only be issued as a last resort," she said. It has a 30-day limit that can be renewed up to five times.

Sun cited examples of elderly or lovelorn victims, noting the case of a 64-year-old woman who was duped into parting with S$400,000 (HK$2.27 million) by a supposed lover.

Existing safeguards were inadequate, she said, as "self-effected transfers" accounted for 86 percent of all scam reports and 94 percent of losses from January to September.

Scam losses amounted to S$650 million in 2023.

AGENCE FRANCE-PRESSE