New law effective July 1 lets officers block financial access to prevent scam-related losses
To combat soaring financial scams, Singapore is arming police with new powers to freeze bank accounts of potential scam victims under the Protection from Scams Act 2025.
New Powers Under Scam Law
Starting 1 July 2025, Singapore police and Commercial Affairs officers will be empowered to issue Restriction Orders (ROs) under the new Protection from Scams Act 2025. Passed by Parliament on 7 January 2025, the law enables authorities to temporarily freeze the banking and credit facilities of individuals suspected to be targets of scams.
According to the Ministry of Home Affairs (MHA), these orders are considered a “last resort”, invoked only after failed attempts to dissuade victims from proceeding with suspicious transactions. Officers can act when they have “reasonable belief” that a person may transfer funds, withdraw money, or apply for credit in ways that could benefit a scammer.
What Restriction Orders Mean
Once issued, an RO imposes immediate limits on:
- Online, mobile, and in-person transfers (including PayNow and ATM services)
- All credit facilities, such as credit card transactions and personal loans
y default, ROs will target seven systemically important banks: DBS, OCBC, UOB, Citibank, HSBC, Maybank, and Standard Chartered. However, other banks may also be subject to ROs if scam-related suspicions arise.
Duration and Appeal Process
Each RO lasts up to 30 days and can be extended up to five times, with a total maximum of 180 days. If a person is deemed no longer at risk, the order may be lifted early.
Affected individuals or joint account holders can appeal to the Commissioner of Police, though the order remains active during the appeal. The Commissioner’s decision is final.
Accessing Frozen Funds
Victims under an RO are not completely cut off. They may request access to funds for legitimate uses—like paying bills or covering daily expenses—by applying to the police. Each request is evaluated case by case, ensuring both safety and fairness.
Why This Law Was Needed
This bold move comes as scam activity skyrocketed in Singapore. In 2024 alone, S$1.1 billion was lost to scams—up 70% from S$651.8 million in 2023, per a Singapore Police Force report released on 25 February 2025. Total scam cases surged to 51,501 in 2024.
Most victims lost under S$5,000, but the median loss was S$1,300, highlighting how widespread and costly scams have become. The law is aimed at preventing irreversible financial harm before it occurs.
The Protection from Scams Act marks a significant shift in scam prevention, prioritizing proactive protection over reactive enforcement. For citizens in Singapore and nearby Indonesia, where cross-border scams are increasingly common, this law could serve as a model of rapid, responsible state intervention to curb rising cybercrime.
Sources: The Online Citizen (2025) , Busiess Times (2025)
Keywords: Protection From Scams Act, Bank Account Freeze, Singapore Police, Scam Victims, Restriction Orders, Scam Law 2025
