Singapore Passes Law Allowing Caning for Scammers, Money Mules After Victims Lose Nearly $4B Since 2020

Singapore has passed a new law that introduces corporal punishment — including caning — for convicted online scammers and money mules, in what officials are calling one of the toughest anti-fraud measures in the world. The legislation, which was debated and approved by parliament on Tuesday, follows a surge in financial scams that have drained billions of dollars from victims over the past five years.

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Senior Minister of State for Home Affairs, Sim Ann, announced that under the new law, offenders found guilty of large-scale online scams, or of acting as “money mules” to move fraudulent funds, will face mandatory caning — at least six strokes — in addition to prison sentences. The measure, she said, is part of Singapore’s commitment to protecting its citizens and maintaining the city-state’s reputation as a trusted global financial hub.

According to government data, scam-related losses in Singapore have reached alarming levels. Since 2020, victims have lost nearly $4 billion to various online fraud schemes, including phishing scams, fake investment opportunities, and impersonation calls. Sim Ann revealed that between 2020 and mid-2025 alone, losses amounted to over $2.8 billion, with thousands of Singaporeans falling victim to increasingly sophisticated criminal networks.

“Scams have become not just a financial crime, but a national threat,” Sim said during her presentation in parliament. “The harm caused to victims — financially, emotionally, and psychologically — cannot be understated. We must send a strong deterrent message to those who exploit technology to deceive and destroy lives.”

A Growing Scam Epidemic

The proliferation of scams in Singapore has been fueled by advances in technology, encrypted messaging platforms, and the growing use of digital payment systems. Law enforcement agencies say criminals have exploited these tools to hide their identities and operate across borders.

One particularly troubling trend involves the recruitment of “money mules” — individuals who agree to receive and transfer stolen funds in exchange for commissions. Some are duped into participating, while others knowingly facilitate the crimes. The new law now treats such actions as serious offenses, punishable by both imprisonment and caning, even if the individual was not the original scammer.

In several high-profile cases, scam syndicates based in Southeast Asia have used social media and dating apps to lure victims into fraudulent investment schemes. In 2023, the police reported more than 46,000 scam cases — a 50 percent increase from the previous year. The spike prompted widespread concern, as even well-educated professionals and retirees fell prey to well-orchestrated deception rings.

Strong Public Support

Public sentiment in Singapore appears largely supportive of the new law. Many citizens see it as a long-overdue response to what has become a national crisis. Victims’ advocacy groups have praised the government for recognizing the emotional trauma and financial ruin that scams can inflict on ordinary families.

“I lost over $100,000 in a fake investment scheme that I thought was legitimate,” said a 56-year-old victim, who asked not to be named. “These criminals deserve harsh punishment. They destroy lives without remorse.”

A recent survey by the Institute of Policy Studies found that 72 percent of Singaporeans support the use of corporal punishment for serious financial crimes, especially those involving organized syndicates.

However, human rights advocates have criticized the move, arguing that caning amounts to inhumane treatment and that deterrence can be achieved through other means, such as longer jail sentences and stricter digital monitoring. Amnesty International and Human Rights Watch have both urged Singapore to reconsider, calling the punishment “disproportionate” and “contrary to modern justice principles.”

Government’s Defense

In response, Sim Ann defended the policy as necessary given the scale of the crisis and the evolving tactics of cybercriminals. “Singapore must remain one of the safest places in the world — not only on the streets but also online,” she stated. “We will not hesitate to use firm measures to ensure our people’s safety and financial security.”

The government also announced plans to strengthen cooperation with foreign law enforcement agencies and financial institutions to track cross-border transactions linked to scams. A new national anti-scam center will be established, bringing together police, banks, and technology firms to share intelligence and block suspicious transfers in real time.

Minister for Communications and Information Josephine Teo said the public would also be better educated about online fraud through a series of campaigns aimed at raising digital literacy. “While legislation is vital, prevention begins with awareness,” she said. “Our goal is to make every Singaporean alert and informed in the digital age.”

A Message to Criminal Networks

With this latest move, Singapore has joined a growing list of Asian countries tightening laws against cyber fraud. Neighboring Malaysia and Indonesia have also seen increases in scam-related crimes, but Singapore’s decision to include caning — a punishment rarely applied outside violent or drug-related offenses — underscores its zero-tolerance stance.

Experts say the measure is designed not only to punish but to send a clear warning to syndicates operating within and outside Singapore’s borders. “This is Singapore telling the world: don’t mess with our people’s money,” said Dr. Eugene Tan, a law professor at Singapore Management University.

As technology continues to evolve, so do the methods of those who exploit it. But for now, Singapore’s latest law signals a dramatic escalation in the global fight against online fraud — one that blends digital vigilance with the city-state’s signature brand of uncompromising justice.