Singapore to roll out new scam protection law on 1 July amid record-high fraud losses

Singapore will introduce sweeping new safeguards against financial scams on 1 July 2025, when the Protection from Scams Act 2025 officially comes into force. The law, passed in Parliament earlier this year, equips police and commercial affairs officers with fresh powers to intervene directly when individuals are believed to be at imminent risk of losing money to scammers.

Authorities say the move is necessary to respond to an unprecedented rise in scam activity, which drained more than a billion dollars from victims in 2024 alone.

Restriction orders as a last resort

At the heart of the new Act is the introduction of restriction orders, or ROs, a legal instrument that allows police officers to direct banks to freeze certain activities in a customer’s account. Once an RO is issued, a suspected victim will no longer be able to transfer money online or via mobile apps, make PayNow transactions, or carry out over-the-counter services and ATM withdrawals. Credit facilities such as card transactions and access to personal loans will also be suspended.

The Ministry of Home Affairs has stressed that these powers will be used sparingly, and only as a “last resort” when all other attempts to dissuade an individual from sending money to scammers have failed. Officers may apply an RO if they have reasonable belief that a person is about to transfer funds, withdraw cash, or use a credit facility in a way that would benefit a scammer. Each case will be assessed carefully, taking into account both the circumstances of the individual and, where relevant, the views of their family members.

Importantly, the law also permits the use of ROs when officers deem it necessary to protect someone from harm, even if no imminent transfer is detected.

Coverage across the banking sector

The Act is designed to apply first to Singapore’s systemically important banks. These include DBS, OCBC and UOB, as well as foreign players such as Citibank, HSBC, Maybank and Standard Chartered. However, the powers are not confined to these institutions alone. If officers have reasonable suspicion that funds may be channelled through other banks to scammers, an RO can be extended to cover those as well.

Although the restrictions are broad, individuals subject to them will not be completely locked out of their accounts. They may apply to the police for limited access to money for legitimate purposes such as daily expenses or bill payments. Applications will be reviewed on a case-by-case basis, providing some flexibility for those caught under the orders.

Duration and appeals

The new framework also sets clear time limits. An RO will initially be valid for up to thirty days, but may be renewed in monthly increments up to a maximum of six months. After 180 days, the order will automatically lapse, even if the person is still considered vulnerable.

The Act provides for an appeal mechanism. Any individual placed under an RO, as well as joint account holders, may appeal directly to the Commissioner of Police. The order will remain active while the appeal is under review, and the Commissioner’s decision will be final. Police have the discretion to lift an order earlier than scheduled if they are satisfied that the person is no longer at risk of being scammed.

A billion-dollar problem

The government’s decision to create this new law stems from a dramatic escalation in scam cases over the past two years. According to the Singapore Police Force’s annual report on scams, released in February, losses in 2024 reached S$1.1 billion. This figure represents a seventy per cent increase from the S$651.8 million lost in 2023. The total number of reported cases also climbed to 51,501, compared with 46,563 the year before.

Most scams involved relatively small sums, with more than seventy per cent of cases resulting in losses of less than S$5,000. Nevertheless, the median loss per case was still around S$1,300, underscoring the significant financial strain placed on households. Authorities say the sheer scale of the problem highlights the need for decisive intervention, particularly when life savings and retirement funds are at stake.

Balancing protection and rights

The introduction of ROs represents one of the most direct ways the state has intervened in personal banking matters, raising questions about how to strike a balance between protecting citizens and respecting individual autonomy. By design, the law temporarily curtails a person’s control over their own funds.

Officials argue that the extraordinary measure is justified by the extraordinary circumstances, given the prevalence of scams and the often-irreversible nature of financial transfers once money leaves Singapore’s banking system. The Ministry of Home Affairs has emphasised that the law contains safeguards to ensure the restrictions remain proportionate, including the right to appeal, strict time limits, and the option to request access to funds for legitimate expenses.

Part of a wider strategy

The Protection from Scams Act is only one piece of Singapore’s broader anti-scam strategy. In recent years, the government has set up the Anti-Scam Command to coordinate responses across banks, police and telecommunications providers. It has also launched the ScamShield mobile app, which blocks known scam calls and messages, and rolled out nationwide education campaigns to help citizens spot fraudulent activity.

These efforts reflect the increasingly sophisticated tactics of scam syndicates, which often operate across borders and exploit both technology and psychology to manipulate victims. Police stress that the community remains the first line of defence. Members of the public are urged to pause and verify before acting on unexpected calls or messages, to avoid clicking on suspicious links, and to report suspected scams promptly through official hotlines and apps. Families are also encouraged to watch out for signs that loved ones may be at risk, since officers will take relatives’ input into account when deciding whether to impose an RO.

Looking ahead

The coming into force of the Protection from Scams Act marks a new phase in Singapore’s efforts to combat financial fraud. Authorities hope that the ability to block transactions swiftly will not only act as a deterrent to scammers but also provide a crucial safety net for individuals on the brink of losing money.

Yet experts caution that the fight against scams is likely to remain an uphill struggle. Criminal networks are highly adaptive, often shifting tactics in response to enforcement measures. The Act’s success will therefore depend not just on legal powers, but also on sustained vigilance, public education and close cooperation between government, financial institutions and the community.

For now, the message from officials is clear: stronger state intervention is necessary to shield citizens from one of the fastest-growing threats to financial security. Whether the law will stem the billion-dollar tide of scams remains to be seen, but its introduction signals Singapore’s determination to get ahead of a problem that has already taken a heavy toll.