Singapore has stepped up in an assertive manner, trying to deal with the emergence of scam and has conceived the Protection against Scams Act 2025, which gives the authorities the right to counter interfere and save a possible victim. Enacted by Parliament on January 7, 2025, assented to by the President in February, the Act is a big step in the direction of preventing scams pro-actively. Financial fraud is becoming dynamic, but this act has the potential to protect the citizens and help rebuild the trust of people on digital transactions.
What the Anti-Scam Act Covers
The new law permits police and other specified officers to execute Restriction Orders (ROs) against banks to freeze transactions of accounts that are apprehended to have been targeted by the scammers. These orders may stop money transfer, ATM withdrawal as well as the use of credit facility. The aim is to avoid further losses as the authorities interact with the victim and his or her family.
Protecting Victims from Themselves
The purpose of the Act was to cover a situation when the victim, who received warnings several times, still sends money to fraudsters. With the temporary restriction of accounts, the law also allows police to act and educate victims. ROs are provided in the worst case scenario and there is still the access of funds by the victims to cover their day-to-day needs.
Expanded Scope Beyond Remote Scams
Although, the Act originally targeted the more distant types of fraud, which is scams that happen on phone or through a social media site, the Act now emphasizes in-person scams. This also comprises the conventional cases of cheating where communications were made face-to-face like cheating contractors or lying friends. The broader scope is representative to the changes in scam strategies in Singapore.
Safeguards and Duration of Orders
The RO is 30 days and extendable five times, and its maximum is six months. Before ordering anything, the police are to consult the family as well as the victim. In case he or she is not at risk any more, the RO may be abrogated prematurely. These measures are meant to protect the law and make it be used only when it is essential.
Impact on Banks and Financial Institutions
All the leading retail banks in Singapore are covered by the Act, such as DBS, OCBC, UOB, etc. Banks have to follow the ROs and help to look at the suspicious transactions. This input among the law enforcement agencies and the financial institutions is instrumental in the effectiveness of the Act.
Final Thoughts
The proposed Anti-Scam Act 2025 is an opportune and, therefore, satisfying solution to the scam crisis in Singapore. The law ensures that the country is dedicated to financial integrity and digital safety by giving those in power the right to intervene and rescue vulnerable individuals in a timely manner. Learn more about the help Singapore is giving to citizens in the form of finances by reading our article about the S$600 Cost of Living Support 2025. This law will keep Singapore one ahead of the scams that keep getting more advanced.
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