SINGAPORE: A recent report has shown that US$1.02 trillion (S$1.4 trillion) is lost annually around the globe through scams, with one out of every four persons getting victimized. This is equivalent to 1.05 per cent of the global GDP. Interestingly, on average, victims in Singapore have lost the most money.
The most common type of scam is shopping scams (27 per cent), followed by identity theft and investment fraud. Scammers’ most popular way to reach victims is through phone calls (61 per cent), followed by SMS/Text Messages (58 per cent).
The report, titled The Global State of Scams 2023, was released by the Global Anti-Scam Alliance (GASA), ScamAdviser.com, and academics from the Netherlands’ University of Twente. The report’s alarming results were revealed by Prof Jorij Abraham, the managing director of GASA, at the two-day Global Anti-Scam Summit in Lisbon, Portugal, on Oct 18.
Sixty per cent of victims said they suffered significant emotional distress upon being scammed, showing that aside from financial loss, the emotional impact of being victimized by scammers is significant. The report also noted that “a significant disparity exists between perceived scam awareness and real-world vulnerability.”
The report involves 49,459 people from 43 countries. Singaporeans lost US$4,031 (S$5,533.10) per victim on average, the highest amount among the different nationalities, followed by Swiss scam victims US$3,767 (S$5,170.72), and Austrians US$3,484 (S$4,782.26). The report also notes that Kenya, Vietnam, Brazil, and Thailand scam victims have experienced “disproportionately high losses.”
The report’s results underline “an urgent need for vigilance and preventative action,” as 25.5 per cent of people around the globe have reported losing money due to scams just in the past year. However, over two-thirds (69 per cent) of the study’s participants believe they can identify these scams.
“Attractive offers are a universal scammer strategy. Developing countries see these as the main enticement, but even in developed nations, many fail to spot the scams. Concerningly, repeat victimization is frequent, with individuals globally targeted on average 1.5 times a year. Kenya and Nigeria report even higher rates,” the report adds.
Furthermore, hesitating to report these scams is common, with 59 per cent expressing doubts about the outcomes and almost one in four (24 per cent) believing there is no use in reporting. The citizens of some nations say their governments do well when it comes to scams, but those from a number of other countries, such as Brazil and Thailand, expressed concerns.
“The escalating crisis of deception in the digital era has transitioned scams from sporadic events to a full-blown international emergency. With entire nations on the brink of being overwhelmed, particularly developing nations, the mandate of the Global Anti-Scam Summit is clear: unite, strategize, and counteract. Should we falter in our concerted efforts, we risk leaving countries and their inhabitants tragically exposed to this menacing deluge,” added Prof Abraham.
/TISG
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