(Jan 9): Banks in Singapore support a new law that will allow the police to control accounts of holders who they suspect to be scam targets, the city state’s latest effort to tackle a surge in cases.

The new measure will provide more time for victims to “come out of the hold of the fraudsters” and protect them from financial loss, Ong-Ang Ai Boon, a director of the Association of Banks in Singapore, said in an emailed statement on Thursday.

The Protection from Scams Bill passed in Parliament on Tuesday gives the police powers to issue restriction orders to banks, which will then limit the banking transactions of people’s accounts. At least S$385.60 million (US$282 million or RM1.27 billion) was lost to scams and cybercrime cases in Singapore in the first half of 2024, up 24.6% from the same period a year ago, according to police data.

“Our policy intent is for the restriction orders to be issued as a last resort,” Minister of State for Home Affairs Sun Xueling said in Parliament on Tuesday.

Each order would last for up to 30 days, and can be extended as many as five times. People whose accounts are restricted have to apply to the police for access to their funds to cover their living expenses and other necessary expenditures.

The restriction order will lapse after the maximum number of renewals, even if the individual remains set on transferring monies to the scammer.

ABS said it has seen cases where victims are so emotionally invested that they want to proceed with the transaction, despite obvious signs and advice by their bank and the police.

The industry group also said that while banks will continue to enhance their anti-scam measures, the public is urged to “maintain healthy scepticism against deals or promises that are too good to be true”.