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E-commerce scams are on the rise. Here’s how you can shop safely online
At least 104 Singapore residents have been victimised by e-commerce phishing scammers since January, according to the police
Consumers are encouraged to shop on well-established e-commerce sites and only transact with sellers whose identities have been verified against government-issued documentation.
PHOTO: GETTY IMAGES
Kareyst Lin, Content STudio
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For his niece’s 16th birthday last year, social worker Mark Fernandez, 37, wanted to fulfil her wish for a new laptop.
But the price tag made him hesitate. The laptop she wanted would set him back nearly $1,400 at retail stores.
But the price tag made him hesitate. The laptop she wanted would set him back nearly $1,400 at retail stores.
The savvy shopper decided to browse through online consumer marketplace Carousell for a more affordable option. “I was taking a risk,” Mr Fernandez admits, aware of the rise in e-commerce scams.
He was not sorry – because he played it safe.
E-commerce scams made up the second-highest number of reported cases among all scam types last year, notes Singapore Police Force (SPF) figures. Reported cases more than doubled from 4,762 cases in 2022 to 9,783 cases in 2023.
The three platforms where e-commerce scams happened most often: Facebook, Carousell and Telegram.
To his delight, Mr Fernandez found a listing for the desired laptop – brand new and boxed – at $400 cheaper than retail price.
Being cautious, he checked that the seller’s profile had a verified badge and carefully scrutinised reviews of the seller’s past transactions.
Carousell users who complete all three required verification methods (via Singpass, mobile number and email) will have a blue verified badge beside their usernames.
Mr Fernandez also opted to pay cash on delivery for the device.
The next day, he met the seller to collect the laptop, and transferred the amount via PayNow upon checking that the item was in good condition.
Proud of the practical gift that he secured at a good deal, Mr Fernandez shares that his niece was overjoyed to receive the laptop. “A year later, she's still using it without any issues.”
Check before you check out
The precautions that Mr Fernandez took are among the “best practices” recommended by the Ministry of Home Affairs (MHA) for online transactions.
These include verifying seller profiles and transacting in person.
MHA is part of the Inter-Ministry Committee on Scams, which published the 2024 edition of E-commerce Marketplace Transaction Safety Ratings (TSR) last month.
“The public is encouraged to refer to the TSR for information on the availability of safety features on e-commerce marketplaces, and what they should take note of when transacting online,” says Police Superintendent Matthew Choo, assistant director of the Scam Public Education Office, SPF.
They should also exercise greater caution when transacting on marketplaces without the recommended measures in place. Specifically, shoppers should “only transact with sellers whose identities have been verified by the marketplaces against government-issued documentation, such as NRIC or unique entity number (UEN)”.
They should also use secure payment options when making online purchases, Superintendent Choo adds.
For example, e-commerce platforms such as Shopee and Lazada use escrow payment methods, where money is released to sellers only after a specified period or after buyers confirm receiving their orders.
It pays to stay wary
- Protect your nest egg: Tempted by investment deals that promise lucrative returns, but require you to use your retirement funds? Think twice. These security measures by the CPF Board can help better protect your savings from scams.
- Lock your funds: You trust yourself, but can you trust your device? Using malware, scammers can obtain sensitive details from your phone, and even access your bank account. Here’s a way to better safeguard your funds.
- Beware of bogus links: Phishing scams, which tricks victims into handing over money or data, were one of the top scam types across all age groups last year. Here’s what you should do when you receive an unsolicited link.
New wave of phishing scams
SPF also flags a recent uptick in e-commerce phishing scams involving social media advertisements.
There have been 104 victims who lost at least $63,000 to such scams since January.
Victims would be attracted by deals via ads on social media platforms such as Instagram, Facebook and TikTok.
When they click on the ads, they are led to phishing websites that prompt them to key in credit and debit card details or one-time passwords to “purchase” the goods.
Victims would realise that they had been scammed when they discover unauthorised transactions (different from their intended purchases) being charged to their cards.
This is part of a series titled "Act against scams", in partnership with the Singapore Police Force.
