Singapore looks to crack down on those who sell, misuse local SIM cards for scams
A new Bill was tabled in parliament to make it easier for the authorities to prosecute those who misuse local SIM cards for criminal activity, including "irresponsible registrants".
If the Bill is passed, offenders who misuse local SIM cards could be jailed for up to three years or fined up to S$10,000 (US$7,500), or both. (File photo: iStock)
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SINGAPORE: The authorities will be able to go after more people who misuse local SIM cards for criminal activity, if a new Bill is passed in parliament.
This comes as criminal syndicates increasingly use Singapore SIM cards to circumvent the government’s measures to block overseas scam calls and SMSes, said the Ministry of Home Affairs (MHA) on Thursday (Mar 7).
The Law Enforcement and Other Matters Bill seeks to crack down on three groups of offenders who misuse local SIM cards to facilitate scams and other crimes.
These are "irresponsible registrants" of local SIM cards; those who receive, supply or possess the cards; and retailers who facilitate the fraudulent registration of such cards.
The police have found it difficult to prosecute such offenders because of the burden of proof required, said MHA.
For example, those who give away their SIM cards for money can claim they did not know the cards would be used for criminal activity.
Under the new proposed laws, they cannot simply claim ignorance as a defence but must prove that they genuinely did not know.
If the Bill is passed, offenders who misuse local SIM cards could be jailed for up to three years or fined up to S$10,000 (US$7,500), or both.
Heavier punishments apply to those who repeatedly receive, supply and possess such cards, or facilitate fraudulent registration. They could be jailed for up to five years or fined up to S$20,000, or both, for a second or subsequent offence.
A new bill will be tabled in Parliament next month to punish those who abuse local SIM cards for scams and other criminal activities. This comes as more scammers are bypassing the blocking of overseas calls by using Singapore SIM cards to make calls and send messages. The authorities had also recently announced that, from April, there will be limits on the number of SIM cards each subscriber can register for.
MHA said that the number of local mobile lines involved in scams and other cybercrimes has increased drastically – quadrupling from 5,867 in 2021 to 23,519 in 2023. Losses have nearly tripled from S$137 million to S$384 million.
Scams have continued to be the biggest driver of crime in Singapore. Victims lost S$651.8 million last year while the number of cases rose almost 50 per cent to 46,563 — the highest since the police began tracking scams in 2016.
Other than making scam calls and sending SMSes, scammers have used local mobile lines to receive scam proceeds, such as through the PayNow platform, as well as to set up messaging accounts like WhatsApp.
Other crimes where local mobile lines were used include unlicensed moneylending.
IRRESPONSIBLE REGISTRATION
MHA said that the “rampant misuse” of local SIM cards has been driven by people who give away their cards, or those who provide their particulars for others to sign up for SIM cards. This is typically in exchange for money.
Under current laws, the police have to prove that they knowingly gave the cards away for unlawful purposes, or knew the cards would be used for criminal activity.
“This is hard to prove as they can claim ignorance,” MHA said.
The Bill seeks to lower this burden of proof. Such people can be prosecuted if they know – or have reasonable grounds to believe – that the SIM cards will be used to commit or facilitate a crime, or cause a wrongful gain or loss to someone else.
The person will be presumed to have done this if they did it for their own gain; did not take reasonable steps to find out the identity and physical location of the recipient or the recipient’s particulars; or did not take reasonable steps to find out why the recipient obtained the SIM card.
However, if someone has a legitimate reason for handing over their local SIM card or their particulars, they will not be prosecuted. An example is if they register a card on behalf of family members.
MHA said the proposed laws are not meant for those who were “genuinely tricked” into giving up their particulars, which are then used to register for local SIM cards.
The ministry cited a sampling study based on 127 SIM cards that were used for scams and unlicensed moneylending from January 2021 to May 2023. Almost 80 per cent of the cards were not under the control of registered subscribers.
The police recently announced that from Apr 15, people will only be able to purchase and register a maximum of 10 post-paid SIM cards, which are predominantly bought by locals and have been increasingly misused for scam purposes.
Pre-paid SIM cards have usually been of concern, with people still only being allowed to buy a maximum of three pre-paid cards today.
RECEIVING, SUPPLYING, POSSESSING SIM CARDS
MHA also said it is currently challenging to prove that people who transfer or possess local SIM cards without a legitimate reason knew their actions would contribute towards unlawful activities. This includes the SIM cards being used for scams.
Under the Bill, it will be an offence to receive, supply or possess local SIM cards without legitimate reason.
The authorities will also not need to prove criminal intent if someone buys, sells or rents a local SIM card registered in another person’s particulars. This is because there is no reason why any person would be trading local SIM cards registered under someone else in exchange for payment, said MHA.
For example, if someone has 10 unregistered local SIM cards and another 10 local SIM cards registered under other people’s particulars, he will be presumed to have the intent to use the cards to commit or facilitate a crime.
MHA said that he could be prosecuted if he could not give a credible reason why he had so many cards.
Meanwhile, retailers will face heavier punishments if they facilitate the fraudulent registration of local SIM cards.
Senior management or employees who are involved in this can also be jailed.
At the moment, mobile service providers can be found to have breached their regulatory obligations if they or their appointed retailers facilitate fraudulent registration of local SIM cards.
All the new proposed offences will apply to corporations and unincorporated associations like partnerships and societies. The maximum fines for them will be twice the amount for individuals.
CLOSING A LOOPHOLE
Separately, the Bill aims to close a loophole concerning simulated phishing exercises.
Under the Miscellaneous Offences (Public Order and Nuisance) Act, it is technically an offence to transmit false messages even if it is for a legitimate purpose.
MHA noted that simulated phishing exercises are carried out as part of cybersecurity practises to train people to avoid phishing attacks, reducing their risk of falling victim to scams and cybercrime.
The Bill introduces a defence under the Act for false messages to be transmitted for legitimate purposes related to public order, public safety or national security, or the prevention, investigation or prosecution of offences.
The Bill will be debated in parliament at a later sitting.
