In 2023, a significant portion of e-commerce fraud cases reported in Singapore were linked to platforms such as Facebook, Instagram, and WhatsApp. Authorities in Singapore have voiced concerns that Meta, the parent company of these social media sites, has not taken adequate steps to combat the increasing prevalence of scams. In response, Meta announced that it is currently piloting new initiatives aimed at reducing harmful activities on its platforms.
One such incident involved Joel, a Filipino expatriate residing in Singapore, who encountered what appeared to be a legitimate post in a Facebook group dedicated to his community. The advertisement featured secondhand electronics and furniture, piquing Joel’s interest in a laptop and an iPhone 14. When he reached out to the seller, he was asked to provide a deposit of 800 Singapore dollars (approximately $592). Seeking assurance, Joel requested a mobile number for the transaction, which triggered his suspicions.
“I noticed that the account name was different from the person I had been chatting with,” Joel recounted, sharing his experience with Rest of World while opting to use only his first name for privacy reasons. Feeling uneasy, he proposed paying in cash upon delivery. The seller countered with a request for a deposit of 100 Singapore dollars on items priced at 1,250 Singapore dollars. Joel declined this offer, leading the seller to abruptly stop responding.
Reflecting on his narrow escape from becoming a scam victim, Joel noted the prevalence of similar suspicious posts across various Facebook groups. “Facebook really needs to enhance its screening processes to verify the authenticity of these listings,” he remarked, mentioning his repeated attempts to report the fraudulent account. It wasn’t until weeks later that the account was finally removed.
With nearly 6 million residents, Singapore has become a prime target for scammers, and unfortunately, many individuals are not as fortunate as Joel in evading fraud. The police reported a staggering 46,563 scam incidents last year alone—an alarming rise of nearly 50% compared to the previous year. The financial toll was equally shocking, with scammers pocketing approximately 652 million Singapore dollars (around $480 million) in losses.
E-commerce scams, characterized by advertisements for goods and services that are never delivered after payment is made, rank as the second most common type of fraud reported, trailing only behind job-related scams. As the digital landscape continues to evolve, so too does the challenge of safeguarding consumers from deceitful practices lurking within it.
In Singapore, over 80% of the population is active on Facebook, making it a significant part of daily life for many. However, amidst this widespread usage, a troubling finding emerged: Facebook Marketplace has been labelled the least safe e-commerce platform in the country, according to a government safety index. The rankings revealed that Amazon, Lazada, and Shopee lead the pack, having adopted essential safety measures to protect users from scams. These measures include verifying user identities with government-issued documents, providing secure payment options, and offering remediation for financial losses. In stark contrast, Facebook Marketplace was noted as “the only platform … that has not implemented the recommended safety features,” as highlighted by a report from Singapore’s inter-ministry committee on scams.
In March of this year, a junior minister publicly admonished Meta, the parent company of Facebook, for its failure to incorporate these critical safety protocols. In response, Meta defended itself by stating that the nature of scams is intricate and that it has stringent policies in place to combat malicious activities.
A spokesperson for Meta conveyed to the Rest of the World that the company is aligned with Singapore’s initiatives against online fraud and is actively collaborating with law enforcement to confront this growing problem. The spokesperson also mentioned that alongside efforts to raise awareness about fraud, Meta plans to introduce several initiatives aimed at enhancing security. This includes testing verification processes specifically for Facebook ads and the Marketplace.
On a global scale, financial fraud—including advance payment schemes—is on the rise as individuals increasingly turn to digital platforms. Interpol reported that scammers managed to pilfer over $1 trillion from victims last year alone. In response to this alarming trend, Singapore has enacted stringent legislation aimed at curbing such crimes. The Online Criminal Harms Act came into force in February, with its provisions designed to “counter scams and malicious cyber activities” officially taking effect in June.
According to the Ministry of Home Affairs, the online services deemed most vulnerable to e-commerce scams in Singapore include Facebook Marketplace, Facebook ads, and various Facebook pages. In light of these findings, the ministry has urged service providers to implement user verification protocols. It is currently evaluating measures to authenticate the identities of “risky sellers” operating on these platforms.
Munira Mustaffa, the executive director of Chasseur Group, a security consultancy, shared insights with the Rest of the World regarding the challenges of anti-scam legislation. She noted that while such laws can occasionally hinder criminal activity, their effectiveness is often limited. “This might explain why policymakers in Singapore are shifting their focus towards exerting pressure on technology firms to adhere to regulations and design features that foster a safer online environment,” she explained. However, she cautioned that these initiatives are likely underfunded when compared to the enormity of the issue at hand, especially considering the vast financial capabilities these companies possess if they were willing or required to utilize them.
In a related effort to combat scams, Meta has taken steps beyond merely raising awareness; the tech giant is implementing additional verification protocols for its Facebook Marketplace platform. Recent statistics reveal that Facebook eliminated approximately 631 million fake accounts globally during the first quarter of 2024 alone. These fraudulent accounts constituted around 4% of the platform’s active user base worldwide during that time, although specific data for Singapore was not provided.
In Singapore, e-commerce platforms have proactively informed users about potential scams and have introduced protective measures such as restricting the sharing of personal contact information within their apps and holding payments in escrow until buyers receive their items. Additionally, local authorities have launched a scam alert hotline and a WhatsApp service designed to assist residents in verifying dubious messages, images, and videos.
However, the landscape of cross-border transactions adds another layer of complexity to the fight against scams. Nydia Ngiow, managing director of BowerGroupAsia, highlighted this issue in her discussion with Rest of World. “Current cybercrime laws are generally confined to local jurisdictions, which may prove inadequate in tackling the increasingly transnational nature of scams,” she remarked. Yet, she also pointed out that technology companies often need a strong impetus—such as legislative action—before they take significant steps to combat scams. “Legislation can serve as a vital deterrent by sending a clear message about the repercussions and penalties associated with fraudulent activities,” she added.
The rise in scams has prompted a notable response from the Singapore police in recent times. Unprecedented in their approach, they have called upon e-commerce companies to station personnel at their Anti-Scam Centre (ASC). This collaboration enables employees from these firms, along with representatives from banks and telecommunications companies, to work directly with law enforcement. Together, they can swiftly examine reports of scams, halt dubious bank transactions by freezing accounts, and put a stop to suspicious phone lines and user accounts, according to officials.
Since the beginning of the year, local e-commerce giants Shopee and Carousell have heeded this call, placing staff members at the ASC. Law Minister K. Shanmugam noted in a written response to Parliament that this partnership has greatly enhanced the police’s ability to monitor scam accounts in real time. It has also streamlined the process for these platforms to remove fraudulent accounts or listings, fostering a stronger collaborative relationship between law enforcement and e-commerce sites. He mentioned that authorities are contemplating making such staff deployments a requirement for online platforms.
The initiative has proven particularly effective for Carousell. Earlier this year, the platform took proactive measures by suspending ticket sales for Taylor Swift’s concerts across all six of its markets: Singapore, Hong Kong, Indonesia, Malaysia, the Philippines, and Taiwan, for nearly two weeks. A spokesperson for Carousell explained that an early warning from their colleague at the ASC indicated a growing trend of scams related to the Eras Tour, which was expected to escalate as the concert dates approached. With insights from the police, the company was able to gauge the “unprecedented scale” of risk involved more accurately.
For individuals like Joel, who narrowly avoided falling victim to a scam, this situation has bred a sense of wariness towards e-commerce platforms. He now finds solace only in trusted sites like Amazon. Reflecting on his experience, he remarked, “If it looks too good to be true, it probably is.” His newfound skepticism highlights the growing need for vigilance in an increasingly complex digital marketplace where trust is paramount.
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