Money mules: Scam syndicates use Telegram to recruit young people for bank and Singpass accounts
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Screenshots of advertisements for bank accounts and Singpass credentials on Telegram group chats in August.
PHOTOS: ST
SINGAPORE - Scam victims in Singapore lost a total of $660.7 million in 2022, up from $632 million in 2021, figures released earlier in 2023 by the police
To move money within Singapore and out of the country, scam syndicates often recruit money mules
Checks by cyber security firm Group-IB showed that there were 14 Telegram groups offering cash for Singpass accounts.
The Straits Times found that there were also five public group chats on Telegram with messages sourcing for both bank and Singpass accounts.
The reason cyber criminals want access to Singpass credentials is because they could use them to open multiple bank accounts, said Mr Tan Hwei Qiang, a fraud protection solution engineer at Group-IB.
The advertisements on Telegram sought a variety of bank accounts – such as DBS Bank, OCBC Bank and UOB – with rates of $600 to $1,800 for each account that a money mule opens.
With some banks automatically flagging transactions above $10,000, scam syndicates often collect several bank accounts to break down vast sums and evade detection, said Ms Caryn Leong, regional anti-money laundering director for Asia-Pacific at the Association of Certified Anti-Money Laundering Specialists.
This way, they can transfer smaller sums of $1,000 or $2,000 through multiple accounts to make them look like normal transactions, she added.
Mr Andy Prakash, co-founder of local cyber security firm Privacy Ninja, said that because each bank has in place different transaction limits, security measures and investigation protocols, scam syndicates try to cover their tracks by having accounts across different banks.
Singpass accounts are priced between $2,000 and $6,000 each, even reaching $7,500. The prices differ based on whether the Singpass account is “clean” or “dirty”, state the ads on Telegram.
Mr Tan at Group-IB said “clean” Singpass accounts are those that have not been involved in previous fraud operations. He added that these accounts can be used to open bank accounts and transact money for a longer period of time without being detected.
Singpass details are valued more highly than bank accounts because they offer access to a wide range of data, making them a veritable goldmine for criminals, said Mr Prakash.
He added that aside from being used to open multiple bank accounts, Singpass accounts can also be used to apply for bank loans, set up companies or rent cars for illegal activities such as drug trafficking.
When ST contacted one of the recruiters, he repeatedly said that selling bank accounts is “not illegal” and “(confirmed) safe”.
The police said such Telegram ads are highly questionable and should raise red flags, adding that they work with service providers to obtain information on the account users and remove the accounts used by bad actors.
