Financial scams are one of the biggest threats to your wealth, and sadly more people are falling victim to fraudsters every year.
The Straits Times has reported that, in 2023, there were 46,563 recorded cases of financial scams in Singapore. This is the highest annual figure since police began keeping records in 2016, representing an increase of 46.8% from 2022. Victims lost a combined total of $651.8 million.
What’s interesting is that the type of scams that are becoming the most prevalent are fairly new. Malware, for instance, featured in the top 10 most prevalent scams in 2023 despite being relatively unknown before 2022.
The best way to protect your wealth from scammers is to be informed about the methods they use to target victims. Read on to discover the five most prevalent scams in Singapore in 2023 and the red flags to look out for so that you can remain vigilant.
1. Job scams
Job scams were the most prevalent type of scam that took place in Singapore in 2023, with 9,914 cases reported, according to The Straits Times report.
They usually involved the victim being offered a new job working from home, such as writing online reviews, completing online surveys, or carrying out tasks on social media. Victims were asked to transfer money to bank accounts provided by the scammers in order to receive their commission.
To protect yourself from scams like this, it’s important to gain all the facts about any job opportunities you or a loved one are planning to take up. Any that require you to transfer money to them before you can receive commission or payment are likely to be scams.
2. E-commerce scams
There were more than twice as many ecommerce scams reported in 2023 as in 2022, rising to a total of 9,783 cases. A common type of e-commerce scam was to sell fake concert tickets for artists such as Taylor Swift, Ed Sheeran, and Coldplay.
Facebook and Carousell were the two most popular platforms used for these types of scams. So, if you’re buying tickets for events such as concerts, make sure you only use official vendors to avoid being caught out.
3. Fake friend scams
Fake friend scams are a relatively new phenomenon. No cases of this scam were reported in 2020, but in 2023 police dealt with 6,859 cases.
The scam involves someone calling you or sending a WhatsApp message claiming to be someone you know. They might say that their phone has broken and they need you to send some money for them to fix it. More recently, scammers have begun sending a link, asking you to help them make a restaurant reservation or complete a similar task. The link however would take you to a malware site.
It's easy to fall for scams like this when you are concerned that your loved ones may need help. By contacting your friend or relative on a number you trust you can confirm whether they really are asking for help or if you are speaking to a scammer.
4. Phishing scams
Phishing emails are usually designed to trick you into revealing sensitive information that scammers can use to access your bank accounts or other personal details. They may also trick you into transferring money to scammers or downloading dangerous software onto your computer.
Phishing scams tend to involve fraudsters impersonating legitimate organisations or individuals. So, even if an email looks official, it’s helpful to check the URL of any links you are considering clicking on beforehand by hovering your mouse over them. Other giveaways include bad spelling or grammar and unusual sender email addresses.
You can also confirm the legitimacy of an email with the organisation by contacting them on a phone number or email address you trust.
5. Investment scams
Investment scams attempt to convince you to transfer your money to them under the pretence of investing it in an asset or fund that promises high returns for little or no risk.
These types of scams can be devastating, but fortunately there are some simple ways to identify them.
Many investment scams begin with a cold-call about the investment, so this is your first indicator. If the person on the phone applies high-pressure sales tactics – they may suggest you must decide on the spot or you will miss out on a one-time offer – this is another sign of nefarious intent.
If you are approached by someone selling you an investment in this way, it’s usually sensible to hang up the phone. If in doubt, your financial planner can advise you about whether an investment is a good idea for you or not. Usually, it’s a classic case of the saying “if it sounds too good to be true, it probably is!”.
