Authorities are considering introducing caning as a punishment for scammers in the most serious cases, as Singapore escalates its fight against financial fraud, according to a Channel News Asia report.

The Minister of State for Home Affairs and Social and Family Development Sun Xueling raised the proposal during the Ministry of Home Affairs’ (MHA) budget debate.

This follows a call by MP Tan Wu Meng (PAP-Jurong) for mandatory caning in particularly egregious cases.

Sun acknowledged the devastating impact of scams on victims, stating that the government is reviewing tougher punishments to deter offenders.

Scam-related losses in Singapore soared to S$1.1 billion in 2023, a 70 percent increase from the previous year, despite various countermeasures.

Sun emphasised that authorities are committed to intensifying enforcement, as fraud tactics continue to evolve.

Crackdown on Money Mules Intensifies

Beyond stricter penalties for scammers, authorities are stepping up efforts to disrupt money mule networks, which play a key role in transferring illicit funds out of Singapore for overseas syndicates.

The Singapore Police Force (SPF) is expanding data-sharing with banks to improve fraud detection, focusing on identifying and freezing accounts linked to mule activities.

Additional measures – including cooling-off periods for suspicious transactions – are being introduced to prevent funds from being rapidly transferred.

Sun warned against individuals who knowingly – or even negligently – hand over their SIM cards or bank accounts for scam-related activities, emphasising that doing so is a criminal offense punishable by imprisonment.

She made it clear that claiming ignorance will not be a valid defense.

Authorities have stepped up enforcement, conducting 25 islandwide anti-scam operations last year, leading to more than 8,000 individuals being investigated.

Over 660 have been charged, with convictions resulting in jail sentences.

One case saw a money mule sentenced to six months in prison after receiving RM1,000 (US$224) in exchange for access to his banking account, which was later used to launder over S$160,000 (US$118,989) in fraudulent funds.

Singapore has been ramping up legal measures to tackle financial fraud.

Recently, the Protection from Scams Act was introduced, granting authorities the power to freeze bank accounts suspected of involvement in scams and impose stricter oversight on financial institutions.

These new laws aim to strengthen consumer protection while ensuring faster intervention against fraudulent transactions.

While initiatives such as malware-resistant banking apps and blocking scam calls have been implemented, financial losses continue to mount.

Sun reiterated that authorities are fully committed to escalating their efforts to combat scams, emphasising the government’s determination to protect Singaporeans from fraud and hold perpetrators accountable.

Featured image credit: Edited from Freepik