Would caning scammers and money mules reduce the number of scam cases?

A woman was distraught after she lost not just her life savings, but also her father’s to a malware scam.

This was one of the scam victims Jurong GRC MP Tan Wu Meng saw among the rising number of Clementi residents seeking help after falling prey to scams in recent years.

Some victims even approached him in coffee shops, asking why, if loan shark runners could be caned, the same could not be done to scammers.

This prompted Dr Tan to suggest that caning be considered for scam-related offences, during the debate on the Ministry of Home Affairs’ (MHA) budget on March 3.

Scam victims in Singapore lost $1.1 billion in 2024, a record high in a single year. In total, victims in Singapore have lost more than $3.4 billion to scams since 2019.

And these were only from reported cases, so the amount lost over the years would be much higher.

The distressing stories Dr Tan heard led him to address the issue in Parliament.

He had said: “If they mess with our people, make off with the life savings of Singaporeans, scam Singaporeans, we must do everything in our power to teach the scammers a lesson they won’t forget.”

Minister of State for Home Affairs Sun Xueling told Parliament on March 4 that MHA recognised the serious harm scams can cause and would consider Dr Tan’s suggestion.

When asked why the ministry was considering caning, a spokeswoman told ST: “Scams can cause serious or even irreparable harm to victims, and offenders should face stiff penalties.”

MHA did not state which scam-related offences it was considering caning for, but in her speech, Ms Sun said stiff and deterrent sentences were needed for people who facilitated scams.

They include money mules who provide their Singpass and bank accounts to launder scam proceeds.

Currently, money mules can be charged under laws including the Corruption, Drug Trafficking and Other Serious Offences (Confiscation of Benefits) Act (CDSA) and the Computer Misuse Act (CMA), but do not face caning.

Those who launder scam proceeds can be fined up to $250,000, jailed for up to five years, or both.

Disclosing Singpass credentials carries a maximum jail term of three years, up to a $10,000 fine, or both.

The Straits Times’ Facebook post on the news of possible caning for scam-related offences garnered more than 380 comments, with about 100 netizens expressing their support for it.

What is it about the scam situation that prompted this new idea, and will it work?

War on scams

The authorities have tried multiple ways to combat scams, such as educating the public, developing the ScamShield app, and restricting the banking transactions of stubborn scam victims.

Yet the number of scam cases has only increased every year since 2020.

Ms Sun said MHA has been clamping down on money mules as they are the main way by which overseas scammers launder their ill-gotten gains and transfer them out of Singapore.

Between 2021 and 2024, more than 33,000 money mules and scammers were investigated by the police.

In 2021, the police investigated more than 7,500 money mules and scammers.

This number rose to over 8,000 in 2022 and more than 9,600 in 2023, before falling to over 8,000 in 2024.

Scammers recruit money mules through online advertisements promising “fast cash” to anyone who gives them his or her bank account or Singpass details.

The fraudsters then use these accounts to receive staggering amounts of scam proceeds – sometimes in the millions.

Amendments made in 2023 to the CDSA and CMA made it easier to prosecute those who sell their bank and Singpass accounts.

One of the most significant changes is that money mules can be charged even if they claimed they did not know their accounts were being used for scams.

In August 2024, the Sentencing Advisory Panel (SAP) proposed that money mules who assist scammers be jailed for at least six months, stricter than the current sentence of a fine, jail or both.

Ms Sun said that since the guidelines were published, the courts have generally imposed jail terms for such offences.

In November 2024, former police officer Thye Wee Boon, 43, was sentenced to eight years and eight months’ jail for helping a foreign scam syndicate by funnelling about $10 million through a shell company he set up.

In January 2025, Sakinah Waheeda Abdul Manan, 34, was sentenced to 14 months’ jail after a bank account linked to her received the benefits of a phishing scam totalling nearly $4.8 million.

Dr Tan said caning would be a game changer in the battle against scams.

“Being a scam runner or money mule is not a crime of passion. It is something that requires some thought,” he said.

“One can imagine that some of these scam runners are doing their calculations as well. What’s the likelihood of being caught? If they get caught, what is the likely nature of the penalty?”

Deterrent effect

Nominated MP Razwana Begum Abdul Rahim, who is head of the public safety and security programme at the Singapore University of Social Sciences, said under British rule, caning was reserved only for crimes involving bodily injury, such as murder or rape.

Explaining the punishment’s rationale, veteran criminal lawyer Ramesh Tiwary said: “You have inflicted pain on somebody, so the state inflicts pain on you to show you what you did to the other person.”

Caning in Singapore now covers offences including repeated drug consumption and unlicensed moneylending harassment.

Mandatory caning was introduced in 2010 for first-time offenders who assist unlicensed moneylenders, such as those who harass debtors and provide their bank accounts to loan sharks.

Loan shark harassment carries a fine of between $5,000 and $50,000, up to five years’ jail and six strokes of the cane.

Providing bank accounts to assist unlicensed moneylenders carries a fine of between $30,000 and $300,000, up to four years’ jail and six strokes of the cane.

The number of loan shark harassment cases fell from 11,776 cases in 2011 to 3,336 cases in 2020.

Criminal lawyer Josephus Tan said this could be attributed to the deterrent effect of caning.

He believes there is a high chance caning will similarly deter scam-related offences.

Some netizens felt the punishment would not stop women or men above 50 years old, who cannot be caned.

But Mr Tan said they will still feel the brunt of the proposed law, as the courts can increase jail terms by up to one year for culprits who cannot be caned.

“It will take some time to see the effect of caning, but we’ve got to start now,” he said.

Mr Tiwary disagreed that caning is a deterrent for drug consumption as people still reoffend after getting caned, and questioned if it would work for money mules.

He said that before introducing caning, lawmakers should first track if the SAP’s recommendation for higher minimum jail terms already has a deterrent effect.

Mr Tiwary added that the court should not impose caning in cases where the money mules are not as culpable, such as those who did not know their accounts were being used by scammers.

He said: “It’s a bit disproportionate to their knowledge or their involvement, because caning is a scarring sentence which scars you forever physically and mentally.”

Associate Professor Razwana said caning might be seen as an extreme measure, but it could potentially serve as a deterrent, given the seriousness of scams and their impact on victims.

But she added that it is essential to balance deterrence with rehabilitation.

The associate professor, who studies effective criminal justice systems, said money mules and scam runners are often motivated by financial gain, sometimes driven by economic hardship or coercion.

She said educating them about legal consequences and increasing their financial literacy could be helpful.

She added: “Offering legitimate employment opportunities and support could reduce the allure of quick money through scams.”

Christine Tan is a journalist at The Straits Times reporting on crime, justice and social issues in Singapore.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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