Soon, Your Bank Accounts Could be Restricted If You’re a Potential Scam Victim

By
Champa Ha
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Scams are occurring a lot more in Singapore now.

We’re not talking about your favourite snack auntie suddenly raising her prices for her food items. She’s going through it, okay?

We’re talking about actual criminals creating increasingly intricate scams that seek to target people at their weakest.

Maybe you’re looking for jobs in this tough market and you answer an ad that seems to want them to inject some money to complete certain tasks.

Maybe you’re looking for love and get involved with someone called Dennis who keeps asking you for money.

Maybe you’re looking to start a new business and your friend gets you into Herbalife.

Let’s face it: scams are getting a lot more elaborate in Singapore. If you become a victim, you shouldn’t feel ashamed.

However, there are ways to prevent or reduce the risks of getting conned, and a new law might get the police involved in a huge way to stop people from becoming victims.

Saving You From Yourself

The Ministry of Home Affairs (MHA) is looking to propose new legislation that can empower the police to restrict banks to stop banking transactions from potential scam victims if there is reasonable belief that they will be making transfers to potential scammers.

This will be enforced if the potential scam victims refuse to believe they have been targeted and still insist on transferring money out.

Banking transactions that the police can stop include transactions made by online banking, PayNow and automated teller machine (ATM) facilities.

Banks involved that the Police can issue Restriction Orders (ROs) in will include the seven Domestic Systemically Important Banks (DSIB) that handle most of the consumer deposits in Singapore, such as DBS, OCBC, UOB, Citibank, HSBC, Maybank and Standard Chartered Banks.

In a press release published on 11 Nov, the MHA has said that this new move would help the police better protect targets who refuse to believe they are being scammed.

Strengths and Weaknesses

In the first half of this year, according to the press release, 86% of reported scams resulted from transfers sent voluntarily from victims.

“The scammers did not gain direct control of the victims’ accounts, but manipulated the victims into transferring their monies to the scammers,” MHA explained.

The police currently have no powers to stop the victims from transferring money to the scammers if they insist on doing so.

There are however drawbacks to the police’s scope of power: They can only issue ROs for scams conducted substantially via digital or telecommunication channels such as calls, SMSes, or online communications.

The more traditional cheating cases that involve in-person interactions, such as transfers to errant renovation contractors, or to family members and friends, will not be covered.

Oh No! The Police Gave ME An RO?!

If you have been subject to a restriction order,  here are some things to note:

On a case-by-case basis, people who have gotten restriction orders will still have access to their money for legitimate reasons, such as paying bills and daily living expenses, so don’t worry if you’re worried about not enjoying your daily chai tau kway.

One restriction order can last up to 30 days at a time, but if the authorities deem it necessary, it can be extended up to five times. This can happen if say the police need more time to gather evidence, engage your next-of-kin for assistance, or convince you to adopt the safeguards and necessary banking safety tips.

So worst-case scenario? Up to six months.

Damn.

You can choose to appeal, of course, but you will have to do so to the Commissioner of Police and if you do so, whatever he says will be final.

Then, if the police believes you are no longer at risk of being scammed, they can also cancel the restriction order ahead of the 30-day limit, so hurrah.

On the plus side? These restriction orders will only be issued as a last resort.

You can watch this video for more information:

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Champa Ha