Scam mastermind used Grab app loophole to cheat firm of over $26k

A teenager who discovered a loophole in a Grab app payment system later masterminded a scam that cheated the ride-hailing firm of over $26,000 through nearly 2,000 fraudulent ride bookings last year.

Ryan Wong Wei Zhi, now 20, had invited a childhood friend, Chua Wei Beng, 22, to take part in the ruse. Chua, in turn, roped in Kenneth Ho Hong Wei, 23. All three were then full-time national servicemen. By April last year, the three Singaporeans managed to recruit 14 more people into the scheme, promising them up to $400 in commission per week.

Wong pleaded guilty on Tuesday to one count of engaging in a conspiracy to cheat GrabTaxi Holdings between February and April last year.

Deputy Public Prosecutor Phoebe Leau said Wong hatched a plan around January last year to dupe Grab into paying out monies for phantom rides on GrabHitch, a service that allows people to book rides with private car drivers.

He had earlier realised that he could book a GrabHitch ride on a rider's account by using a debit card linked to an empty bank account. He could then accept such a booking by using a separate driver's account, logging the pickup and drop-off points on the app without making any trips.

The DPP said: "On that basis, Grab would be induced to pay out the earnings from the fraudulent ride to the 'driver' who accepted the booking. Grab would then charge the cost of the ride to the debit card provided by the 'rider'.

"However, Grab would receive no payment, as the bank account linked to the debit card had no funds to begin with."

In February last year, Wong roped in Chua, who offered his driver's account for use. They agreed to split the profits equally.

Over the next few weeks, they met every Friday to book fraudulent rides. They would book two rides daily for every day of the week except Friday.

To increase their gains, the duo later roped in others, including Ho.

The offences came to light when a Grab operations research analyst spotted the fake transactions and alerted the police on April 17 last year.

Yesterday, the court called for reports to assess Wong's suitability for probation and reformative training. Offenders given reformative training are detained at a centre where they follow a strict regimen that includes foot drills and counselling.

Wong, who has not made any restitution, will be sentenced on June 30. The cases against Chua and Ho are pending.