The measure, passed in a parliamentary session today, comes as financial frauds are exploding in the Southeast Asian country and globally.

Scam victims in Singapore have lost around S$3.8 billion (US$2.9 billion) since 2020, with a record S$1.1 billion in losses last year, according to data from the local police.

The pervasiveness of the problem alarmed authorities, with the number of cases reaching nearly 20,000 in the first half of this year, with S$456.4 million in losses.

“Scams are by far the most prevalent crime type in Singapore today,” Sim Ann, senior minister of state for home affairs, said during the session.

“They make up 60% of all reported crimes,” she said.

Singapore already uses caning for several crimes, such as vandalism, serious sexual offenses and robbery.

The Southeast Asian financial hub has implemented a series of measures to combat the surge in scams, including by restricting access to key banking and telecoms services for individuals who are linked to scam activities.

The country also passed a new law earlier this year that would allow the police to control the bank accounts of individuals who they suspect to be scam targets and limit what transactions they can do.

Singapore’s police and the central bank have also worked with major retail banks since 2022 to distinguish scams from legitimate transactions, trace fund flows and freeze accounts suspected to be linked to criminal operations.