MAKING SCAM BUSTING THEIR BUSINESS Firms put in place safeguards to avoid losing customers' trust

Digital payment provider Xfers has been dealing with scams since 2015, when it found that fraudsters were using its e-wallet services to launder money from victims.

But the workload became too much for its compliance team to handle, so the local start-up created a dedicated fraud team last year to tackle the rising number of scams in Singapore and Indonesia, where it operates.

Xfers co-founder Samson Leo, 35, said the company spent a six-figure sum last year on manpower and technology to fight cybercrime and fraud.

Besides building new app features, such as an additional verification step if a high scam risk is detected, the fraud team also analyses transactions for insights on how scammers operate and to spot accounts that are being misused.

Mr Leo, who is also Xfers' chief legal officer, said: "Preventing fraud helps merchants and customers gain more confidence in digital payments. Digital payments are the future, and this is the right thing to do."

Other businesses have also made fighting scams and fraud a priority.

Companies in industries from human resources to e-commerce said they are changing the way they operate in the light of the proliferation of scams in the last two years.

Last year alone, scams cost victims in Singapore at least $633.3 million. Businesses, too, feel the pinch in terms of lost productivity and trust.

Recruitment company Randstad discovered this year that fraudsters were impersonating its recruiters in job scams on Telegram after retrieving their full names and registration numbers from the Manpower Ministry's employment agency directory.

It even received complaints from people about the unprofessionalism of its "consultants", who were actually scammers.

The company now requires all its recruiters to use only WhatsApp and WeChat to converse with job seekers, said a Randstad spokesman.

She noted that unlike on Telegram, WhatsApp users can see one another's mobile numbers, so job seekers can call to check the legitimacy of the recruiter as scammers are less likely to answer calls.

Meanwhile, the Central Provident Fund Board, whose SMS about ElderShield last month caused confusion as it contained a clickable link - resulting in some recipients thinking it was a scam - will avoid links in SMSes where possible.

Alternatively, it will convert the links so that they do not lead directly to a page requiring login credentials, said a spokesman for the board.

Companies have also stepped up their efforts to educate consumers about scams.

This year, tech giant Meta worked with the Media Literacy Council and the National Crime Prevention Council to launch a public education campaign centred around how to shop safely online.

The campaign reached 2.2 million Facebook and Instagram users in Singapore.

Mr Daryl Poon, regional head for trust and safety at Meta, said: "Education is important because users need to understand how to recognise some of the risks in the online space. Once you understand the risks, you are less likely to fall prey to malicious actors."

Ms Anna Yip, chief executive of Singtel's Singapore consumer business, said Singtel sales representatives distribute pamphlets with information on ways to identify a legitimate representative.

For instance, they would be wearing Singtel uniforms and have an authorisation letter. They also will not enter homes or collect any form of upfront payment, according to a pamphlet seen by The Sunday Times. Singtel did not say when the distribution began.

This comes as the police said last Tuesday that at least 154 victims have lost $7.1 million to tech support scams since January. One method used by scammers includes calling victims and posing as staff working for Internet service providers such as Singtel.

Staff and drivers from logistics company Ninja Van Singapore have been distributing fliers to migrant workers and domestic helpers to raise awareness of cash-on-delivery scams, in which customers are asked to pay for parcels they did not order or which do not match their expected purchases.

Chief operating officer Lee Ghim Hock said: "It is heavily in our interest to promote consumer awareness and education, as the productivity loss due to time spent on scam cases is significant and ever-increasing as the e-commerce industry grows."

Professor Lawrence Loh, director of the Centre for Governance and Sustainability at the National University of Singapore Business School, said being linked to scams affects a business' reputation.

"Once this is affected, consumers may lose their trust in such businesses. Ultimately, the bottom lines of the businesses will be jeopardised when revenues are lost," he said.

He added that it is critical for businesses to play a front-line role in preventing fraud because they form a crucial line of defence for consumers, who often bear the burden in scams.

Xfers' Mr Leo noted that as more safeguards are set in place to protect customers, the speed of transactions could slow down.

"Some legitimate users may be delayed, but it is a trade-off we hope customers will understand," he said.

•Additional reporting by Nadine Chua

LESS FRAUD, MORE CONFIDENCE

Preventing fraud helps merchants and customers gain more confidence in digital payments. Digital payments are the future, and this is the right thing to do.

''

MR SAMSON LEO, co-founder and chief legal officer of digital payment provider Xfers.

KEEP PEOPLE INFORMED

Education is important because users need to understand how to recognise some of the risks in the online space. Once you understand the risks, you're less likely to fall prey to malicious actors.

''

MR DARYL POON, regional head for trust and safety at Meta.