Singapore has plans to introduce a brand new legislation known as the Protection from Scams bill within the coming months, in line with an announcement from the Ministry of House Affairs on August 30.
Because the identify suggests, the proposed legislation goals to combat scams within the nation. How? By letting the police freeze financial institution accounts and bank cards with out warning in the event that they imagine somebody is being focused by scammers.
Particularly, the police will have the ability to situation Restriction Orders (ROs) to banks, which then permits them to quickly limit banking transactions of people focused by ongoing scams who proceed to switch cash regardless of warnings.
If a person has been assessed to warrant a RO, the police will situation the RO to all of the seven Home Systematically Necessary Banks (D-SIBs) in Singapore. That is in circumstances the place the person has banking accounts with a couple of financial institution.
This bill is a response to the rise in rip-off circumstances, the place victims switch cash to fraudsters regardless of safeguards like the present “kill switch”.
A surprising 86% of scams reported in early 2024 had been “the result of self-effected transfers”. Principally, they concerned victims willingly sending cash to scammers.
The legislation will goal scams accomplished remotely, reminiscent of by way of telephone, textual content, or on-line. Accounts may very well be frozen for 28 days, and even longer if wanted.
However don’t fear—these affected can nonetheless ask the police for cash to pay payments and important bills. Plus, for those who suppose the freeze is unfair, you’ll be able to attraction to the Ministry of House Affairs.
Suggestions welcomed
Whereas the intentions of the bill are clear and optimistic, the introduction of the legislation may result in differing public opinions. Whereas some could perceive and welcome it as a mandatory instrument to stop scams, some might even see it as a type of authorities overreach.
Nonetheless, the MHA emphasised that the ROs will solely be issued as a final resort, after different efforts to persuade rip-off targets to cease the transfers have failed.
On one other word, the bill may probably have an effect on individuals’s belief in banks, as they could really feel uneasy in regards to the notion that their funds may very well be frozen with out discover. They could flip to decentralised options reminiscent of cryptocurrencies, which can find yourself leading to fraud too.
From now till the top of September, the ministry is searching for public suggestions on the brand new bill. How Singapore decides to maneuver ahead with this proposed bill could set the stage globally for related safeguards in opposition to scams.
Study extra in regards to the Protection from Scams bill right here.
Learn different articles about Singapore right here.
Featured Picture Credit score: DBS Financial institution