Shopee customers lost $399,000 in 2024 after making payments outside app to scammers

SINGAPORE - At least 179 cases of e-commerce scams involving the sale of items on Shopee were reported to the police in 2024, with losses amounting to at least $399,000.

The scammers’ modus operandi was to host live streams or list products on the shopping platform to entice shoppers to place orders, police said in a statement on Jan 24.

After an order was placed, the fake seller would nudge the victim to complete the transaction outside of the Shopee app, offering a discount in exchange.

The victim would be directed to messaging platforms, such as Telegram and WhatsApp, to complete the transaction.

In some cases, victims were added to Telegram group chats with other scammers posing as buyers.

These bogus buyers would confirm their receipt of products in the group chats to convince the victims that the sellers and products were legitimate.

The victims would transfer money through PayNow or bank transfers to purchase the products.

Some victims were also notified that their products were withheld at Customs and that they needed to transfer more money to resolve the issue.

They would realise that they had been scammed when they did not receive the products, or when the sellers became uncontactable or banned by Shopee.

In a statement by Shopee on Jan 25, a spokesperson “strongly advised” its users to buy from trusted sellers, such as Shopee Mall and Preferred Sellers.

The spokesperson also urged its users to keep all transactions within its app, as they are protected by its safety measures such as Shopee Guarantee.

“This key feature holds payments in escrow until buyers confirm receipt of their products and satisfaction with their purchase, significantly reducing the risk of fraudulent transactions,” the spokesperson said, adding that the feature’s coverage period has been extended from seven to 15 days.

For more information on scams, please visit

www.scamshield.gov.sg

or call the ScamShield Helpline on 1799.