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Pedestrians near shopping mall entrance.

SINGAPORE: Over S$100,000 in unauthorised credit card transactions has been reported in Singapore, as foreigners recruited by overseas syndicates target local retailers in a new scam trend.

According to The Business Times, the syndicates are believed to have used stolen credit card details, acquired through online phishing scams, to make high-value purchases via contactless payments. The stolen credit card details are then loaded onto a mobile app that provides remote access for contactless payments.

Foreigners, reportedly recruited in their home countries through social messaging platforms, are instructed to travel to Singapore to purchase high-value items like mobile phones, electronic accessories, and gold bars using contactless payments. These items are then resold for cash.

Over the past month, several such cases involving individuals of various nationalities have been reported.

Since Nov 4, over 10 victims of e-commerce scams have reported unauthorised transactions totalling over S$100,000 on their credit cards. These transactions were used to purchase items such as electronic products, including iPhones and chargers, as well as jewellery in Singapore.

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On Nov 6 and 7, three Chinese nationals, aged 29 to 36, were arrested in connection with such a scam. The three men—Zhang Tianyu, Xu Zhaochen, and Li Xueqi—were charged with one count of cheating on Nov 8. They allegedly used stolen credit card details to purchase iPhones at the Apple Store in Orchard Road. The police later took the men to an Apple reseller at Bugis Junction for questioning on Nov 14.

Over S$20,000 in cash, along with four gold bars and 27 iPhones, were seized in connection with the case.

A fourth person, named Zhao Yongzhi, was also under investigation in connection with the case.

In a separate incident, a Malaysian man and woman were arrested on Nov 8. They had responded to an advertisement for a fast cash advertisement on social media. The man tried to buy mobile phones at a retail store using a mobile wallet, but the payment failed. The police were notified, and the suspects were identified and arrested within seven hours.

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Police seized three mobile phones, a bank receipt, and S$7,600 in cash. The two suspects, Quek Jian Qing, 21, and Yong Huo Ying, 24, were charged with one count of cheating on Nov 9. The pair allegedly conspired to carry out credit card fraud to buy iPhones from the Best Denki store at Parkway Parade. The police brought them to the store on Nov 14 as part of the investigations.

These two cases appear to involve different syndicates, despite the similar methods used, the police said. The five suspects are in remand, with their cases set for a hearing on Nov 15.

The police issued an advisory to retailers on Nov 14, warning them to be on the lookout for suspicious activity. High-value electronic and luxury goods retailers are advised to be cautious of customers who make multiple contactless payments, try different mobile phones or cards after transactions fail, or avoid tax refunds.

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The police added that fraudsters may try to conceal their appearance with caps and masks and may not have accents that match their supposed nationality.

If a transaction fails, retailers should offer assistance, ask about the payment method, and request to see the physical card linked to verify the mobile payment. If multiple red flags are raised, the transaction should be stopped, and the police should be contacted.

Scam cases reached record levels in the first half of 2024, with over S$385.6 million lost in 26,587 reported cases. The police warned that defrauding retailers is a serious crime and those involved in scams and fraud could face up to 10 years in jail and a fine. /TISG

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Featured image by Depositphotos (for illustration purposes only)