Online scams are no longer just a nuisance—they've become a billion-ringgit problem that governments across the region are struggling to contain. Singapore, often regarded as one of Southeast Asia's most digitally advanced economies, has just taken a bold step in tightening the noose around scammers and their accomplices. And frankly, Malaysia could benefit from paying close attention.

What Exactly Are Scam Mules?

At the heart of many scams lies a critical enabler: the "scam mule." These are individuals who either knowingly or unknowingly let criminals use their bank accounts, mobile numbers, or online identities to launder stolen funds. Some are recruited with promises of quick money, while others simply hand over their details without realizing the risks. Either way, scam mules grease the wheels of fraud operations, making it harder for authorities to trace stolen money and pin down the masterminds.

Singapore's Facility Restriction Framework

To combat this, Singapore is rolling out what it calls a "facility restriction framework." Beginning October 2025, individuals linked to scam activities could find themselves locked out of essential services. This includes:

These measures go beyond punishing convicted criminals—they also target those merely enabling scams. The goal is to cut off the tools scammers need to operate, whether it's a local bank account or a phone number that victims are more likely to trust.

Why Singapore Is Pushing Harder

Despite recording fewer scam cases in early 2025 compared to the previous year, Singapore still saw nearly 20,000 cases with losses topping S$456.4 million (about RM1.49 billion). The numbers tell a clear story: while arrests and awareness campaigns help, scammers are constantly evolving, often exploiting cryptocurrency anonymity or corporate-registered phone lines. For Singapore, passive policing is no longer enough—systemic restrictions are now the weapon of choice.

Lessons for Malaysia: Adapting the Approach

Malaysia has seen its fair share of high-profile scam cases, from SMS phishing and online shopping fraud to elaborate Macau scams. Bank Negara, MCMC, and local police have made progress—think scam awareness campaigns, mule account freezes, and collaborations with telcos. But the reality is, scammers remain one step ahead.

Here's where Malaysia could learn from Singapore:

Moving Towards a Regional Model

With scams often crossing borders, a coordinated ASEAN approach could be the next step. Shared intelligence on flagged mule accounts, cross-border tracking of digital wallets, and synchronized restrictions could drastically reduce scam networks' ability to operate in Southeast Asia.

For Malaysia, aligning with Singapore's framework wouldn't just mean fewer scam cases; it would also build trust in the country's push toward a digital economy. After all, if citizens and businesses feel unsafe online, adoption of digital services—from e-invoices to e-wallets—will stall.