Key Scam Trends and Cases in 2023

Key Scam Trends and Cases in 2023

Singapore continued to experience a significant surge in scam cases, marking a worrying trend in fraudulent activities, with phishing scams, online/e-commerce scams, job scams, investment scams, fake friend call scams, remaining the top five scam types of concern in 2023.

Scammers continued to reach out to victims through Facebook, WhatsApp and Instagram. Of these, about 71.7 per cent of victims were targeted on Facebook, and 18.5 per cent on Instagram. Out of the 12,368 cases where scammers contacted victims on messaging platforms, about 68 per cent used WhatsApp, as reported by TODAY. 

Financial Losses:

Victims lost around S$651.8 million in 2023, which reflects a slight decrease of 1.3% from the previous year. Although this marks the first decline in total losses over five years, we should continue to be on our guard. According to SPF’s Commercial Affairs Department, “. . . a discerning and vigilant public is essential” while “Police will continue to work closely with stakeholders and other government agencies to safeguard Singapore against scams.” 

Key scam trends in 2023:

  1. Phishing Scams - The Digital Deception

    Scammers use emails, SMS, and instant messaging to deceive victims into revealing sensitive information. In Singapore, victims often receive messages impersonating as official notices from banks or government agencies and directed to malicious websites that captured their bank credentials.

    These scams often employ urgent messages about account security or pending deliveries to create a sense of urgency. Business Times reported that the police Anti-Scam Centre and six banks averted more than S$17.1 million in scam losses in a month-long joint operation. 

  2. E-commerce Scams

    E-commerce scams more than doubled in 2023 with 9,783 cases, up from around 4,700 in 2022, with victims losing at least $13.9 million in 2023, down from $21.3 million in 2022.

    Scammers duped unsuspecting buyers into paying for items that are never delivered. These scams, often executed through popular online shopping platforms, continued to be prevalent, particularly among young adults. In a case reported by Straits Times, “in July 2023, at least 54 victims lost over $45,000 in less than a week trying to get tickets to Swift’s The Eras Tour, due to be held here over six nights in March 2024.” 

  3. Job Scams - The Employment Trap

    Job scams targeting individuals, often students, fresh graduates, and even those looking for part-time work, have surged. Per Singapore Police (SPF), since January 2023, at least 1,013 victims have fallen prey, with losses amounting to at least $17.6 million in a job scam variant, where scammers would entice victims by giving them commission for the completion of simple surveys before offering fake jobs thereafter.

  4. Investment Scams - The False Promise of Quick Wealth

    Investment scams continued to evolve in sophistication, often leveraging cryptocurrency and fake trading platforms. Scammers create elaborate schemes with professional-looking websites and mobile applications. With these, scammers try to convince victims of their legitimacy and entice them with promises of guaranteed high returns. In a CNA report, police said “victims were added by people they do not know into chat groups and channels on messaging platforms like Telegram and WhatsApp. These chat groups and channels purportedly offer special investment or job opportunities. This is a common approach modus operandi exploited by scammers behind investment scams and job scams.“

  5. Fake friend call scams

    Scammers are calling unsuspecting victims, claiming to be their friend and asking questions like “Can you guess who I am?” and “You can’t remember me?” (Straits Times)

    “Fake friend call scammers tend to first build trust by pretending to be someone the victim knows before asking for assistance or money,” says Police Superintendent Rosie Ann McIntyre, assistant director of the Scam Public Education Office Operations Department, Singapore Police Force.

Other notable scams

  1. Impersonation Scams

    Scammers impersonating officials from government agencies, such as Singapore Police Force, Ministry of Health (MOH), other government agencies, and banks have become common. 

    • One frequent tactic is the “Singapore Police Force (SPF) impersonation scam,“ where scammers, impersonating government officials, claim the victim’s personal information is compromised, and asking for payment to resolve the issue.
    • Another tactic is where scammers posed as officials from tax or customs authorities to deceive individuals and businesses threatening them with legal action unless they paid bogus fines or taxes.
    • Fake Charity Scams increased as well, especially around holidays or charitable events, where fake organizations or fake fundraising appeals were set up to steal donations from well-meaning donors.
  2. Love/Romance Scams: The Emotional Manipulation

    Romance scams continued to prey on individuals seeking companionship online. Scammers typically create fake profiles on dating applications and social media platforms, building emotional connections before requesting financial assistance. The typical scam involves someone pretending to be in a long-distance relationship or overseas business transaction. In their advisory of 17 August 2023, Singapore Police Force, have “observed a new variant of scams involving malicious dating applications (apps). Since July 2023, at least 19 victims have fallen prey, with total losses amounting to at least $13,000.” 

  3. Cybersecurity Threats
    • As online banking and e-commerce grew, phishing scams remained a significant threat. Cybercriminals used social engineering techniques to trick people into revealing sensitive information like passwords or credit card details.
    • Malware-Enabled Scams: There was a notable rise in malware-related incidents, particularly affecting Android device users, leading to losses of at least S$34.1 million.
    • SIM Card Swap Scams: A growing trend where scammers would misuse local SIM cards to facilitate scams and other crimes. Sometimes, they hijack victims' phone numbers to gain access to their two-factor authentication codes for bank accounts or other sensitive systems.

Key insights and notable developments:

  1. Increase in Scam Cases
    According to the Singapore Police Force (SPF), the number of reported scam cases in 2023 surged significantly compared to 2022. This upward trend was attributed to the growing sophistication of scam tactics, including phishing, impersonation, and e-commerce scams. The SPF has emphasized that public awareness and vigilance are critical in combating this challenge.
  2. Financial Impact
    The total financial losses from scams in 2023 have exceeded hundreds of millions of dollars. In 2023, scam victims in Singapore lost $651.8 million in 2023, reported Straits Times. More than half of the cases – 55 per cent – resulted in losses less than or equal to S$2,000. In their Annual Scams and Cybercrime Brief 2023, Singapore Police reported that, “the amount lost to scams involving the use of social engineering and deception to induce victims to transfer monies to scammers, continues to be high. We are also concerned about the sharp increase in number of scams that were perpetuated through social media and messaging platforms such as Facebook, Instagram, WhatsApp and Telegram.”
  3. Arrests of Scam Syndicates
    Between January and May 2023, the Singapore Police Force (SPF) busted eight scam syndicates with help from law enforcement agencies overseas, highlighting the international nature of many scams and underscoring Singapore's commitment to addressing scams at their root, even when perpetrators are based overseas.
    • Twelve people were arrested in Malaysia after they were suspected to be involved in a scam syndicate targeting Singaporeans, the Singapore Police Force (SPF) said. 
    • Another 14 people in Singapore were arrested or investigated by SPF for aiding the syndicate by laundering criminal proceeds in Singapore.
  4. Rising E-Commerce Scams
    E-commerce scams continued to dominate the landscape, with platforms like Carousell and Telegram being frequently misused. 
  5. Youth Involvement in Scam Syndicates
    Alarmingly, there has been an increase in the recruitment of youths as money mules for scam syndicates. In 2023, SPF arrested over 100 individuals under 25 for their roles in facilitating scams by providing their bank accounts or identities. Public education campaigns targeting younger demographics have been ramped up to counter this trend.

The Singapore government continue to take steps to fight these scams, including increased public awareness campaigns, collaborations with banks, and strengthened laws against scammers. Some of these include:

  1. Enhanced Banking Security
    • Mandatory cooling-off period for digital token setup
    • Enhancement of their security measures against malware scams
    • Lower default transaction limits
    • Additional authentication steps for large transfers
  2. Public Education such as anti-scam awareness campaigns
  3. Law Enforcement
  4. Creation of dedicated anti-scam units
    • Implementation of new investigation techniques

Conclusion

The rise in scams highlights the need for vigilance and proactive measures. Scam.SG is a vital ally in this fight, offering tools and insights to protect individuals and businesses from fraud. Take charge of your safety and that of your loved ones by visiting Scam.SG, checking TrustScore, and staying informed today.

Together, we can build a more secure community.