Authorities in Singapore are taking decisive steps to combat the issue of scam mules by implementing new restrictions on their access to essential services. A collaborative effort involving several agencies, including the police, the monetary authority, the infocomm media development authority, and the technology agency, aims to curb the facilitation of scams that exploit financial and telecommunications services.
Scam mules, individuals who unwittingly or knowingly assist in moving stolen funds, primarily do so through mule bank accounts. These accounts complicate the tracing of illicit funds, as they allow for electronic transfers across multiple banks and out of the country. Current methods utilized for transferring scam proceeds include online banking services, payment systems like PayNow, credit card transactions, and cash withdrawals from ATMs. Furthermore, there is a growing trend of scammers leveraging the anonymity of cryptocurrency to facilitate their operations.
Local phone numbers play a pivotal role in scams, as they lend a level of trust when contacting potential victims. Individuals are more inclined to respond to calls or texts from local numbers, particularly as there is increased skepticism regarding foreign numbers among Singaporeans. Scammers exploit local lines not only to connect with victims but also to create social media accounts for further outreach.
Alarmingly, a notable percentage of subscribers—15% of telephone line users—have previously been implicated in scam-related activities, with over 11,000 lines in use. Some of these individuals have a history of applying for new lines and selling them to scammers. Law enforcement has noted an uptick in lines registered under corporate names, indicating a concerning trend in the adoption of various techniques to facilitate scams.
To address this issue, the government is rolling out a framework that will restrict scam mules’ access to critical services associated with financial transactions and telecommunications. This includes a ban on certain banking services that are often misused for scams, such as online banking, mobile banking, and ATM transactions. New subscriptions to mobile lines will also be prohibited, and restrictions will be placed on existing corporate accounts and specific online service registrations that pose a higher risk of being exploited.
The scope of these restrictions will vary depending on the assessed risk posed by the individual. Those previously warned, prompted with fines, prosecuted, or convicted of related offenses, as well as individuals currently under investigation for similar crimes, may face these limitations.
Implementation of this framework will occur in stages, beginning in October 2025. This initial phase will see the focus on banking services and mobile line subscriptions, while further restrictions affecting corporate accounts will follow. Those impacted by the restrictions will receive notifications, and there will be avenues to appeal the decisions made by the authorities.
In conjunction with these measures, the government is also introducing sentencing advisory guidelines that advocate for harsher penalties for those involved in scam-related crimes. These enhancements aim to address the severity of the offenses, with mules potentially facing imprisonment as part of their consequences.
Overall, these initiatives signal a robust response to the growing challenges posed by financial scams, emphasizing the commitment of Singaporean authorities to maintain the integrity of its financial and telecommunications systems while protecting its citizens from fraudulent activities.