How to Protect Yourself from Falling into Scams

With one of the highest internet penetration rates globally, Singapore provides scammers with ample opportunities to target a broader audience across various online platforms such as social media, email, and messaging apps. Coupled with the nation's robust economy, this perception of affluence makes Singapore an especially attractive prospect for scams and fraudsters seeking lucrative opportunities.

Below are the common types of frauds and scams in Singapore along with recommended precautionary measures you can take to mitigate the risk of becoming a victim.

1. Job Scams: A fraudulent scheme designed to deceive individuals seeking employment. Job scammer often pose as legitimate or genuine employers, using fake job postings to lure unsuspecting job seekers and promising exceptionally high wages for immediate positions.

Precautionary measures: It is advisable to always source for jobs from established job portals or official channels and not be too quick to trust job offers from unidentified phone calls, social media posts or messages. Be highly vigilant if the job entails an upfront registration fee or request for personal information that is irrelevant to the job application process. 

2. E-Commerce Scams: An e-commerce scam refers to fraudulent activities carried out in online transactions, particularly in the realm of buying and selling goods or services over the internet. These scams can range from false advertising, non-delivery scam, payment frauds or even selling of counterfeit goods.

Precautionary measures: It is advisable to shop from reputable official websites and use secure payment methods. Additionally, maintain strong account security measures such as enabling two-factor authentication to prevent unauthorised access to personal information and accounts.

3. Fake Friend Calls Scams: This scam involves a fraudster assuming the identity of a friend or acquaintance to deceive a victim into providing emergency funds or divulging personal information, often resulting in the compromise of their banking details.

Precautionary measures: It is important to verify the identity of anyone requesting money or personal information, especially if the request seems unusual or unexpected. If you are unsure, try to contact the supposed friend or relative directly using known contact information and by being wary of any requests for secrecy or urgency.

4. Phishing Scams: A type of cyber-attack where attackers use fraudulent emails, text messages, or other forms of communication to trick individuals into providing sensitive information such as passwords, credit card numbers, or other personal data.

Precautionary measures: You should always exercise caution when responding to unsolicited messages, refrain from clicking on suspicious links or attachments, and verify the legitimacy of requests for personal or financial information before providing any details.

5. Investment Scams: An investment scam is designed to deceive individuals or organizations into investing funds into a purported investment opportunity that either does not exist or does not yield the promised returns. The perpetrators typically use false or exaggerated claims to lure investors, promising high returns with low risk. However, in reality, investors often end up losing their money as the scam collapses or the fraudsters disappear with the funds.

Precautionary measures: Do thorough research in the company, its track record, and its legitimacy. Beware of investments that promise excessively high returns with minimal risk. Ensure that the individuals or companies offering the investment opportunity are properly licensed and registered with relevant regulatory authorities. Beware of investment opportunities that require you to make payments through unconventional methods or to unfamiliar accounts.

Additionally, it might be a good idea to read up more about common scams and to report any suspicious activity to the appropriate authorities to prevent more victims from falling into their trap.

Precautions that you can adopt to prevent yourself from being a victim of scam:

>   Protect yourself and your loved ones by staying informed and aware of the latest tactics used by scammers. Stay vigilant with the latest updates from https://www.scamalert.sg/.

>   Download the ScamShield application on your smartphone. This allows you to automatically bock incoming scam calls and scam messages. You can find out more about ScamShiled here: https://www.scamshield.org.sg/ .

>   Suspect that your accounts have been compromised? Activate the “kill switch” with your bank. This measure allows you to freeze your bank accounts such that no funds can be siphoned by the scammers. Check with your bank on how to activate this “kill switch”. Most banks have a dedicated fraud hotline for this.

>   My Credit Monitor (MCM) – Protecting Against Identity Theft

-   A credit report is a comprehensive record of a person’s credit history including accounts opened, credit limits, payment history and outstanding debts. The report also list the inquiries made into your credit history such as application for new credit accounts or loans, therefore any unauthorised inquiries can be a sign of attempted identity theft, indicating that someone may be trying to use your information to obtain credit illegally.

-   My Credit Monitor (MCM) is a self-credit monitoring tool that sends out message or email notification to alert you of any unauthorised or suspicious activities promptly. By allowing you to regularly review your report for unfamiliar account or inquiries, you can take appropriate action such as alerting the authorities or the bank to place an account freeze to mitigate further financial risk. Additionally, it allows you to stay informed of any updates or developments concerning your credit information.

Lastly, follow and like CBS Facebook and Linkedin page for more useful content and tips to maintain a good credit score or visit the CBS’ website to get a copy of your credit report.

Contributed by Credit Bureau Singapore

Published 30 April 2024.