In April 2024, a woman initiated a transfer of $20,000 from her OCBC Bank account to an international bank, stating it was a loan to a friend. Five officers from OCBC Bank and the Singapore police’s Anti-Scam Centre tried to convince her not to make the transaction, due to suspicions that she was being scammed. They made at least five calls to her, each lasting over half an hour, to persuade her to cancel the transaction. Nevertheless, the woman went through with the transaction. By the time she realised it was a scam, the $130,000 in her bank accounts had been wiped out, leaving her with only $600.
Unfortunately, the case above is just one of many. In the first six months of 2024, 86% of scams involved victims transferring money based on trust, including love scams, investment fraud and impersonation schemes. The Financial Times described Singapore as engulfed in a “scamdemic”, attributing such prevalence of scams to Singaporeans being “rich and naïve”. Victims also commonly fall prey to scams when scammers exploit their loneliness or financial insecurity.
In light of this, a new legislation protecting the public from scams took effect on 1 July 2025. The Protection from Scams Act (the Act) will aid the Police in protecting individuals who are being targeted by scammers or cheaters, and who refuse to believe that they are being deceived. This article will cover:
- What the Protection from Scams Act does
- Whether the Protection from Scams Act covers both remote and physical scams
- What is a Restriction Order
- When is a Restriction Order issued
- Which banks will a Restriction Order be made against
- Whether a scam victim can use money in their bank account for daily expenses once a Restriction Order is issued
- How long will a Restriction Order be in effect
- Whether a Restriction Order can be disputed
- What are the safeguards in place to ensure that a Restriction Order does not unduly inconvenience the scam victim?
What Does the Protection from Scams Act Do?
The Act proactively restricts individuals from transferring, withdrawing, and borrowing money from the bank if there is reasonable belief that they are being scammed. This will be done through a Restriction Order (RO) (explained below) against the banks in which the individuals may have accounts.
Does the Protection from Scams Act Cover Both Remote and Physical Scams?
The Act aims to primarily protect victims from remote scams. Under the Act, a scammer is defined as someone who has taken a step to commit a scam offence by interacting with the scam victim through remote communication. Scam offences include:
- Illegally obtaining personal information
- Cheating (dishonestly inducing a person to transfer goods to another person)
- Obtaining services dishonestly or fraudulently
- Fraud by false representation, non-disclosure or abuse of position
Remote communication includes any communication facilitated by technology, such as through the internet or phone.
The Act also covers traditional scamming cases which involve physical interactions with the scam victim, and where the scammer is known to the victim in real life, as long as the scammer tried to communicate with the victim remotely.
For example, the scammer could be the victim’s real friend or lover, who gradually gains their trust and starts trying to cheat the victim for money through text messages. However, such cases require more investigation to show that a scam is being attempted, as it is not always clear that the scammer communicated with the victim just to scam them. Nevertheless, the Police may be able to restrict the victim’s bank account under the Act if all conditions for an RO are satisfied (see below when an RO is issued).
What is a Restriction Order?
An RO is an order issued by a specified officer (such as a Police officer or Commercial Affairs officer) against banks that the scam victims may have accounts in. An RO will be in writing and delivered to:
- The scam victim
- Any joint account holder of a bank account of the scam victim
- Any supplementary cardholder linked to the scam victim’s bank account
When is a Restriction Order Issued?
An RO can only be issued if:
- A police officer has reason to believe that the scam victim will transfer, withdraw, or loan money from the bank to benefit a scammer, and
- It is necessary for the protection of the scam victim.
Whether an RO is necessary for the protection of the victim will be determined based on the facts of each case, including information provided by the individual or his or her family member(s). Such information can include evidence that there have been repeated but unsuccessful attempts to convince the victim not to make transfers to the scammer. An RO will be issued only as a last resort after other options to persuade the individual not to make transfers to scammers have been exhausted.
For example, in a love scam case, a 64-year-old female victim entered into an online relationship with a scammer on social media. The scammer claimed that he was working on an offshore oil rig project outside Singapore and that he would come to Singapore to marry her when his project was completed. Over two years, the scammer repeatedly asked for money from the victim, and she complied. Even though the police and her family tried to convince her again and again that she was being scammed, she continued to transfer money to the scammer.
In such a scenario, it might have been necessary for the protection of the scam victim to restrain the victim from making further transfers to the scammer, since she was under the spell of the scammer and seemed to trust him despite counter advice. Unfortunately, the woman in this case lost $400,000 by the time she realised she was being scammed.
Which Banks Will a Restriction Order be Made Against?
Each RO is issued by default against the seven Domestic Systemically Important Banks (D-SIBs) in Singapore. The RO can also be issued to a non-DSIB if there is reasonable suspicion that the scam victim may be transferring money from a non-DSIB account to a scammer. Such scenarios include instances where a scam victim has a non-DSIB account which they used to transfer money to a scammer before.
If a bank does not comply with an RO that is issued against it, it will be subject to a maximum fine of $3,000.
Can a Scam Victim Use Money in Their Bank Account for Daily Expenses Once a Restriction Order is Issued?
The individual restrained by an RO will be allowed to make requests to the police for access to funds, which will be assessed on a case-by-case basis. The individual will be allowed to access money for paying daily expenses, medical bills or insurance premiums. This can be done by making an application to the specified officer in charge of the RO to vary it.
How Long Will a Restriction Order be in Effect?
An RO will be in effect for 30 days at a time. The RO may be renewed for additional 30-day blocks, up to a maximum of five times, for a total of up to 180 days.
If the specified officer determines that the risk of being scammed has subsided, the RO may be cancelled before its expiry.
Can a Restriction Order be Disputed?
An appeal against an RO can be made to the Commissioner of Police. The appeal should be made within the deadline prescribed in the RO and include the following accompanying documents:
- The decision appealed against
- The reasons for the appeal
- Any documentary evidence to support those reasons, such as evidence that the victim has taken up additional safeguards against scams willingly or that the scammer is actually legitimate
While the outcome of the appeal is being decided, the RO will remain active.
The Commissioner may decide on an appeal with or without holding a hearing, and his or her decision on an appeal is final. This means there is no avenue for a further appeal before the civil courts if the victim is unsatisfied with the decision of the Commissioner.
What are the Safeguards in Place to Ensure That a Restriction Order Does not Unduly Inconvenience the Scam Victim?
To ensure that the issuance of an RO does not curb too much of a scam victim’s individual autonomy, four safeguards have been put in place.
- An RO will only be issued if necessary for the protection of the victim. Take, for example, a victim of a love scammer who continues to transfer money to the scammer despite advice from the police. If the police find that the victim has a trusted sibling who is able to monitor the victim’s transactions via a joint account and prevent the victim from making further transfers to the scammer, the police might not issue an RO against the victim.
- An RO will only take effect for a maximum of 30 days at a time and can be extended for up to 5 times only. During this period, the police may work with the victim’s loved ones to reduce the victim’s risk of getting scammed, and the victim may also be referred to a counsellor or social service agency for support. The RO can also be cancelled before its expiry if the individual is no longer at risk of being scammed.
- The individual who is the subject of an RO can access money in his or her bank account to pay daily expenses or bills.
- There is an appeal process for individuals to appeal against the issuance of an RO.
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When debating the implementation of the Act, the Ministry of Home Affairs conducted public consultations to find out the public’s views on restricting scam victims’ bank transfers. Around 90% of the respondents supported the proposals. Some even recounted times when an RO would have been useful when a family member or friend was scammed.
However, some people have also commented that the Act might be intrusive and curb individual autonomy. Therefore, the above safeguards have been put in place so as to ensure that a balance is struck between protecting scam victims and the right to control one’s money.
In summary, the new Protection from Scams Act protects individuals at risk of being scammed. It does this by allowing the police to put in place Restriction Orders on banks with which the individual might transfer money to a scammer. The Act allows authorities to take matters into their own hands to stop victims from acting irresponsibly and losing more money to scammers. It is hoped that this will reduce the number of scam cases in Singapore without unduly infringing on the victims’ autonomy.
If you or your loved ones might have been a victim of a scam, you may wish to contact a criminal lawyer for advice or assistance on the next steps.
