Top Common Scams to Watch Out for in Singapore!
Recent data from the Singapore Police Force indicates that $651.8 million was lost by scam victims in Singapore in 2023.
Job and investment-related scams were the most frequently reported ones that caused sizable financial losses.
Job scams
Job scammers in Singapore often target individuals between the ages of 30 and 49, constituting more than 45% of their victims, primarily reaching out through messaging platforms like WhatsApp and Telegram.
These deceitful actors entice victims with the promise of lucrative online work opportunities, often involving tasks like social media engagement, hotel and restaurant reviews, and survey participation—all from the comfort of home. The scam unfolds as victims eagerly accept these seemingly legitimate offers, only to realize their fraudulent nature when they stop receiving promised commissions or lose the ability to contact the scammers.
Real stories of Job scam victims
In October 2023, a single mother of two responded to a job ad on Facebook and lost $89,000 to scammers within a week. She thought the job was legitimate, as there were comments on the post and a proper website. The scammers instructed her to place online orders for products to boost sales. After several orders, she was asked to pay a fee of $6,000 to withdraw her earnings. When she asked for help, she realized she had been scammed and contacted a debt collector. Unfortunately, her chances of getting the money back were slim [1].
Another story is of a person who was added to a WhatsApp group called “Spotify Music GC 03,” where admins promised to earn money through simple tasks such as liking specific music and providing screenshots to the admins. One of the administrators claimed that users could make a substantial income by engaging in platform activities and completing initial tasks. The task involved liking designated music, sending screenshots of the Spotify page per their specifications, and awaiting staff confirmation. They claimed to collaborate with other organizations for workload distribution and commissions [2].
However, such claims of earning easy money are typically fraudulent, and there’s no such thing as free money.
How to Identify a Fake Job Scam
To avoid getting tricked by investment scams, do your homework thoroughly. Here’s what you should do [3]:
- Research the company’s background and check reviews and testimonials
- Cross-check job details and use reliable job platforms
- Be wary of vague job descriptions and requests for payment
- Avoid unsolicited offers
- Watch out for poor communication and unprofessional contact information, for example, a Gmail address of a company employee or company’s contact service
- Be cautious of rapid hiring processes, short-term online presence (the company started only a few months ago), and unusual interview processes.
- If an opportunity seems too good to be true, it probably is.
Investment scams
In Singapore, investment scams are a serious issue that needs immediate attention. They are responsible for most lost funds and prey on people’s trust, promising high returns. Fraudsters use aggressive marketing, false testimonials, and complex schemes to appear legitimate.
Real stories of Investment Scam Victims
A group of friends fell victim to a 16-year-old boy who cheated them out of $330,000 by convincing them to invest in Bitcoin. He misled them by claiming to have made a profit trading Bitcoin and guaranteeing fixed returns if they invested through him. The boy, who is now 20, had planned to use the money to buy items used in online games such as Counter-Strike: Global Offensive, which he would later sell for profit. However, knowing his friends would not give him the money, he chose to deceive them instead. He managed to cheat his victims out of a total of $332,067. All three victims reported him to the police when they did not receive the promised returns on their supposed investments [4].
In another instance, a couple invested almost $600,000 in two social housing projects in Brazil. These projects were promoted by a Singaporean agency, which was under the management of Wendy Kwek. Regrettably, their investment yielded no returns, resulting in the couple filing a lawsuit against Kwek in an attempt to recover their losses [5].
How to spot an investment fraud
To avoid falling victim to investment scams, it’s important to thoroughly research and investigate. Here are some steps you can take to identify potential investment scams before getting involved [6]:
- Look into the company
- Make sure they have regulatory approval
- Check their documents carefully
- Read reviews online
- Get advice from financial experts
- Be careful with unexpected calls, texts, or emails
- Double-check the contact details
- Watch out for high returns with low-risk offers
Also, be cautious if:
- Someone contacts you out of the blue.
- You’re pressured to make quick decisions
- Contact details seem suspicious, like only mobile numbers or a PO box
Protect your online presence with Eydle
Social media serves as a primary avenue for scammers to target individuals in either job or investment scams. You can secure the online presence of your business today with Eydle. Our expert team, with AI leaders from MIT, Stanford, and Carnegie Mellon, has developed technologies to safeguard your business from online threats. Our monitoring solutions keep your business safe from impersonation attempts. Discover more about Eydle’s protective measures by visiting www.eydle.com or reaching out to us at info@eydle.com.
Resources:
[2] https://www.scamalert.sg/stories-details/Story-05Mar2024130908PM
[6] https://www.moneyhelper.org.uk/en/money-troubles/scams/how-to-spot-an-investment-scam
