Introduction
Singapore is taking further steps to combat the growing issue of scams. The Protection from Scams Bill was passed by the Singapore Parliament on 7 January 2025 to protect individuals who are being targeted by scammers or cheaters, and who refuse to believe that they are being deceived despite repeated advice. The legislation is expected to take effect in the second half of 2025.
From 2021 to 2023, losses from scams and cybercrimes involving local SIM cards almost tripled to S$384 million. New offences introduced under the Law Enforcement and Other Matters Act took effect on 1 January 2025, aiming to deter the misuse of local SIM cards.
Scope of the Bill
The Bill covers both remote scams and traditional cheating cases. Remote scams involve cheating conducted via digital or telecommunication channels, such as calls, social media or online communications. Restriction orders (ROs) may be issued if there is reason to believe that an individual will transfer money to a scammer or cheater, withdraw money and give it to a scammer or cheater, or apply for or draw down from any credit facility with the intention of benefitting a scammer or cheater.
Traditional cheating cases involve mostly physical interactions, such as transfers to an errant renovation contractor or a family member. The threshold for issuing ROs in traditional cheating cases is higher, requiring clear and incontrovertible evidence of a relevant offence.
The Bill empowers specified officers, including police officers, to issue ROs to the seven major retail banks in Singapore by default. The ROs can also be issued to other banks if the respective thresholds above are met. The ROs are issued only as a last resort after other options to convince the individual that the transactions are benefitting a scammer or cheater have been exhausted.
Effect of ROs and safeguards
The ROs will direct the banks not to execute any banking transaction from the individual’s accounts and not to allow any draw-down of credit facilities. This includes money transfers, ATM transactions, PayNow and in-person over-the-counter transactions.
The Bill provides four safeguards to balance the protection of individuals with their personal responsibility and autonomy.
- ROs will be limited in duration to a maximum of 30 days at the outset. They may be extended if more time is required to persuade the individual. After the maximum of 180 days, the ROs must lapse. ROs can be cancelled earlier if the individual is assessed to be no longer at risk of being scammed or cheated.
- ROs allow the affected individuals access to their money for legitimate purposes, such as paying bills, buying daily essentials or covering their living expenses. These individuals can apply to the police with supporting proof, which will be assessed on a case-by-case basis.
- Individuals subjected to the ROs may appeal against the issuance of the ROs to the Commissioner of Police, whose decision will be final. The ROs will remain active pending the assessment of the appeal.
- The police will continue to engage and support the individuals subjected to the ROs by working with their friends or family members, gathering further evidence and referring the individuals to counsellors or social service agencies if needed.
Offences for the misuse of SIM cards
Irresponsible subscribers
The Act makes it an offence for a person to hand over a local SIM card registered with their details to another person, or allow their details to be used by another person to sign up for a local SIM card, if they know or have reasonable grounds to believe that the SIM card would be used for unlawful purposes. A person will be deemed liable if they gave away the SIM card for any form of gain, or did not take reasonable steps to find out the recipient’s identity, location or purpose.
Middlemen and scammers
The Act also makes it an offence for a person to receive, supply or possess unregistered local SIM cards or those registered with another person’s details, if they intend to use or supply the cards for unlawful purposes or have reasonable grounds to believe that the cards would be used in that manner. A person will be deemed liable if the SIM cards were used for criminal purposes, or if 11 or more SIM cards were found in their possession. Additionally, the Act makes it an offence to buy, sell or rent a local SIM card registered using another person’s details, regardless of criminal intent or knowledge.
Errant retailers
The Act also targets errant retailers who facilitate the fraudulent registration of local SIM cards, knowing or having reasonable grounds to believe that the SIM cards would be used for unlawful purposes. Errant retailers may also be liable if the SIM cards are proven to have been used for unlawful purposes.
Conclusion
The Bill and Act introduce comprehensive measures to disrupt scammers and cheaters. The police can now proactively assist individuals targeted by scammers and cheaters, rather than only reacting after individuals have lost money. The increased scrutiny of SIM card purchases makes it more difficult for scammers and cheaters to contact potential victims in the first place. Banks and SIM card retailers must stay abreast of the relevant regulations to develop processes for implementing ROs where ordered to do so and blocking SIM card sales when there are reasonable grounds.
Reed Smith LLP is licensed to operate as a foreign law practice in Singapore under the name and style Reed Smith Pte Ltd (hereafter collectively, "Reed Smith"). Where advice on Singapore law is required, we will refer the matter to and work with Reed Smith's Formal Law Alliance partner in Singapore, Resource Law LLC, where necessary.
Client Alert 2025-013
