Singapore’s banking sector successfully prevented S$53.9 million in fraud losses during the fourth quarter of 2024, following the implementation of new anti-scam legislation that enables law enforcement to freeze suspicious transactions before funds can be laundered. The achievement strengthens Singapore’s comprehensive digital security initiatives, which include the recent introduction of criminal penalties for SIM card misuse as part of the country’s broader anti-fraud strategy.
The Singapore Anti-Scam Law, enacted on January 7, 2025, provides authorities with the power to take control of bank accounts as a last-resort measure in combating financial fraud. The legislation introduces Restriction Orders (ROs) that can temporarily block specific transactions, including money transfers, ATM withdrawals, and credit card payments. The measure enhances existing security features, such as biometric authentication systems already implemented by major Singaporean banks.
The law automatically applies to seven major banks operating in Singapore: DBS, OCBC, UOB, Maybank, Standard Chartered, Citibank, and HSBC, with provisions to include smaller banks if risks are identified. Built-in safeguards include time limits of up to six months, appeals processes, and family consultations before issuing an RO. These banks have led the implementation of advanced security measures, with DBS Bank notably pioneering selfie authentication for corporate account opening.
“The law gives police the power to freeze suspicious transactions before money disappears into the hands of scammers. Think of it as a ‘pause button’ for your bank account when something fishy is going on,” said Minister of State for Home Affairs Sun Xueling.
While ROs temporarily restrict certain transactions, they maintain access to funds for essential expenses such as groceries, utilities, and meals at hawker centers. The approach protects consumers while maintaining their ability to meet basic needs.
Singapore’s anti-fraud initiatives extend beyond national borders through active regional cooperation. A delegation of Australian banks and financial institutions recently visited Singapore to exchange best practices and discuss emerging anti-scam technologies. The collaboration comes as Australia prepares to launch its own mandatory SMS Sender ID register in 2025 to combat scams. “Scams are not unique to Australia. This is an issue that many countries across the world and in our region are also grappling with. This is a global problem and winning the war against scammers will require a global effort,” said Australian Banking Association CEO Anna Bligh.
The banking sector is also implementing advanced technological solutions, including biometric verification for new individual customers and a confirmation of payee system. The developments match the global trend toward enhanced digital banking security, as shown by Mastercard’s recent introduction of its Payment Passkey Service that replaces traditional one-time passwords with biometric authentication. “Scams have a ripple effect, harming not only individuals but also the financial well-being of their communities. As financial institutions deeply rooted in our communities, customer-owned banks are dedicated to ensuring the safety and security of the customers we serve,” said Customer-Owned Banking Association CEO Michael Lawrence.
Sources: IJDC, Australian Banking Association
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