SINGAPORE: The Singapore Police Force (SPF) has reported that unsuspecting investors have collectively lost at least $36 million in less than two months to a sophisticated network of con artists operating through chat groups and social media platforms.
According to ST, a staggering 897 cases of investment scams have been reported since July. These scams lured victims into what appeared to be lucrative investment opportunities, only to vanish with their hard-earned money.
Methods duping investors
The scammers employed two primary tactics to ensnare their victims or potential investors. The first method involved adding potential victims to chat groups on platforms like Telegram, where the scammers impersonated famous personalities or reputable companies.
Unidentified individuals within these groups would boast about substantial profits from their investments, often sharing screenshots as ‘proof’ to entice others. Once the victims took the bait, they were presented with various investment plans and asked to provide personal details and transfer funds to specific bank accounts or PayNow accounts.
The second method saw scammers reaching out to potential victims through social media platforms like Facebook and WhatsApp, or even dating apps like Coffee Meets Bagel. After establishing a rapport and gaining the trust of their targets, the scammers would introduce them to seemingly legitimate investment opportunities. Those who expressed interest were then instructed to transfer money to designated bank or PayNow accounts.
In both scenarios, the victims were initially led to believe that their investments were genuine, often seeing initial profits or fake growth on fraudulent investment websites or apps. It wasn’t until they attempted to withdraw their funds, only to find themselves blocked and the scammers uncontactable, that they realized they had been scammed.
What to do to avoid getting scammed
To combat this growing menace, the police have issued a set of guidelines for the public to protect themselves from falling prey to such scams:
Add Security Features: Disallow unknown users from adding you to chat groups, set transaction limits for Internet banking, and enable two-factor authentication to enhance security.
Check Credentials: Legitimate investment companies do not solicit clients through group chats. Always ask questions and verify the company’s legitimacy, including its owners, directors, and management. Use resources like the Financial Institutions Directory to confirm credentials.
Tell Authorities: Report any suspicious transactions to your bank immediately and inform the authorities, family, and friends about potential scams.
Those with information about these scams or who have doubts are urged to contact the police hotline at 1800-255-0000 or make an online submission through the i-Witness portal.
As the investigation into these scams continues, the police are reminding the public to remain vigilant and cautious when presented with investment opportunities online.