Singapore is taking an aggressive step in its fight against digital fraud: convicted scammers will soon face long-term bans on accessing banking services and even mobile phones. The new rules aim to cripple organized scam networks by cutting off their ability to move money or communicate with victims. (Finextra)
What’s in the proposal
- Under the proposed amendments, anyone convicted of scam-related crimes could be banned from opening bank accounts, holding debit/credit cards, or using mobile services for a set period. (Finextra)
- Authorities will also create a centralized registry of these individuals, accessible to financial institutions and telecom providers.
- The goal is to prevent repeat offenses by blocking scammers from the infrastructure they use to carry out fraud schemes.
Why Singapore is acting now
- Digital scams have surged in recent years. According to Singapore’s police, scam losses hit SGD 2.3 billionbetween 2019 and 2023.
- Many scams rely on “money mule” accounts, where victims are tricked into transferring funds to accounts controlled by criminal networks. (Finextra)
- By removing access to these channels, the government hopes to disrupt the entire fraud ecosystem.
Global context
- Singapore’s approach is one of the strictest worldwide, going beyond financial monitoring to actively restrict access to core services.
- Other jurisdictions, like the UK and EU, focus on AML rules and transaction tracking rather than outright bans.
- This move signals Singapore’s determination to remain a trusted global financial hub by ensuring its banking and telecom sectors are protected against large-scale fraud.
Potential concerns
- Reintegration challenges: Critics argue that banning access to essential services could make it harder for rehabilitated individuals to reintegrate into society.
- Operational burden: Banks and telecom companies will need robust systems to check the centralized registry and enforce bans.
- Privacy issues: Maintaining a database of convicted individuals raises questions about data protection and potential misuse.
Next steps
- The proposal will go before Singapore’s Parliament later this year for debate and final approval.
- If passed, implementation could begin in early 2026, with public education campaigns to explain the new rules to consumers and businesses. (Finextra)
Bottom line
Singapore is setting a bold precedent by cutting scammers off at the source — denying them access to the very tools that make fraud possible.
While controversial, the move could become a blueprint for other nations grappling with rising digital crime.
