Protect Your Finances With Scam Prevention Strategies

Have you ever received messages from “royals” requesting assistance in moving money out of their country, promising you a cut of the fortune? Or you’ve gotten calls claiming you’ve won a multi-million dollar lottery overseas, with the catch being that you must share your bank details to collect your winnings. These are classic examples of scams that have persisted since mobile technology became integral to our lives.

However, scammers have become increasingly sophisticated in recent years, targeting not just individuals but also businesses and organisations. In the first half of 2020, Singapore experienced a staggering 140 per cent increase in scam incidents compared to 2019. Alarmingly, a survey by the Home Team Behavioural Sciences Centre revealed that 45 per cent of scam victims reported being targeted multiple times.

The Singapore Police Force reported that in the previous year, scammers swindled a remarkable $201 million, primarily through online schemes as residents turned to websites and apps for banking and grocery shopping during the COVID-19 pandemic. Scammers have also shifted their focus to individuals working from home via robocalls, as well as seniors who may not be well-versed in navigating the Internet.

The growing number of scam victims highlights the increasingly sophisticated psychological tactics employed by scammers. They create false evidence, impersonate close friends of the victim, and exploit the victim’s feelings of embarrassment about potentially falling for a scam to extract more funds. Romance scammers, in particular, excel at identifying lonely and vulnerable people—an ever-expanding demographic due to the social isolation resulting from COVID-19.

To protect yourself and others, it’s essential to understand common fraud tactics. Below are ten prevalent scams in Singapore (listed randomly):

E-COMMERCE

Fraudulent activities in e-commerce frequently involve counterfeit online sales advertisements for high-value or sought-after products. A recent incident involved a 28-year-old woman who posted a Rolex watch for sale on Carousell. After the buyer transferred $5,000 to her bank account, she vanished without a trace. These deceptive listings typically feature attractively low prices or make bold assertions about the items, such as claiming that specific test kits can detect COVID-19 within ten minutes.

ADVICE
Always shop on online platforms that have a secure payment system, releasing funds to the seller only after you have received the item. If a deal seems too advantageous, it’s likely a scam.

SOCIAL MEDIA IMPERSONATION

Scammers have been known to impersonate employees of telecommunications companies, celebrities, and even the victim’s acquaintances by hijacking profile pictures and sending fake friend requests on social media. Recently, Mr Baey Yam Keng, Senior Parliamentary Secretary for the Ministry of Transport, was impersonated by multiple accounts using his images to solicit bank information from users—something no reputable business or public figure would ever request.

ADVICE
Verify the authenticity of any social media account that contacts you before engaging with them. Platforms like Twitter and Instagram provide blue verification check marks to identify legitimate users.

ONLINE ROMANCE SCAM

In this scheme, a fraudster initiates a romantic connection through the internet, inundating the victim with heartfelt messages proclaiming eternal love. The alleged partner never appears on video calls, is situated far from the victim, and asserts they have a stable job, yet frequently requests small loans.

SUGGESTION
Utilise Google Reverse Image Search to verify whether the profile pictures are authentic or pilfered from elsewhere online. Additionally, search for specific phrases they’ve used to determine if they are part of a typical scam script.

SEX FOR GIFTS SCAM

An attractive stranger reaches out to a victim on social media platforms like WeChat or Tinder, proposing sexual encounters in exchange for iTunes gift cards or AliPay vouchers. After receiving the requested cards, the individual vanishes without a trace.

SUGGESTION
Be cautious of individuals who offer sexual favours or dates in exchange for gift cards, mainly if their profiles feature images of young, appealing men or women.

FAKE CHINESE OFFICIALS SCAM

This scam frequently targets Chinese nationals residing in Singapore. Impersonators posing as officials contact victims, alleging that they are under investigation for a crime and demanding payment to halt the inquiry. One woman lost $1 million in this manner, while others have been tricked into using Bitcoin vending machines and QR codes for transactions.

SUGGESTION
Stay firm against demands for payment. If you feel threatened, contact a friend or family member for assistanceor contact law enforcement for assistance.

TECH SUPPORT ALERT

Even those in IT can be vulnerable to fraud. For instance, one individual mistakenly transferred $180,000 to scammers, believing he was assisting the government with a sting operation aimed at catching hackers. Such scams frequently involve fake software updates that seize control of your computer or impersonated emails from clients or employees designed to build trust with potential victims.

ADVICE
If you receive a call or message instructing you to download software for work, consult your IT department to verify its authenticity.

BANKING PHISHING SCAMS

Fraudsters can spoof bank phone numbers, making their communications about frozen ATM cards or unauthorised transactions appear credible. This deception leads victims to unknowingly share their banking credentials or pay bogus fees. Remember, legitimate financial institutions would never contact customers for sensitive information.

ADVICE
If you receive a communication purportedly from your bank, do not reply to the same number. Instead, contact your bank’s official hotline to confirm the message’s authenticity.

NON-BANKING PHISHING SCAMS

A prevalent example of this type of scam is the parcel delivery ruse, where victims are prompted to enter credit card information to check their parcel’s delivery status. In one case, a woman was deceived into paying a courier $2,500 in fake customs fees for gifts sent by a con artist.

ADVICE
Be wary of messages regarding parcel tracking that come from personal email addresses or unfamiliar phone numbers. These messages should also be in English only.

LOANS

Fraudulent loan operators often reach out via text or WhatsApp, luring individuals with offers of quick and effortless loans without any inquiries. Once the victim sends money to the scammer’s bank account as a supposed deposit for the promised larger loan, the scammer disappears. In some cases, these fraudsters may also ask for sensitive information such as identification numbers or SingPass credentials, which they later use to intimidate the victims.

SUGGESTION
Immediately block and report the scammer on the platform you encountered them. Additionally, always check the Ministry of Law’s website for a list of licensed moneylenders in Singapore before agreeing to any loan.

INVESTMENT

Scammers often entice victims with seemingly lucrative investment opportunities, claiming that opening a trading account can achieve substantial profits. Victims may invest significant amounts of money only to discover that their promised returns are fictitious. For instance, earlier this year, one man lost $50,000 while trying to increase his income during the COVID-19 pandemic.

SUGGESTION
Beware that there are no guaranteed, risk-free investment opportunities. If such an opportunity existed, it would not be promoted through social media or messaging apps.

THINK YOU’VE BEEN SCAMMED?

STAY CALM! Immediately cancel your credit cards and notify your bank to monitor for any unusual transactions. Report the incident to the authorities and ensure you keep records of all interactions with the scammer—capture screenshots of text messages and emails for evidence. Even if recovering your funds proves impossible, assisting in apprehending the scammer can help protect others from falling victim to similar schemes.

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