Singaporeans in the face of the online scam epidemic: how wealthy people become victims

Over the past two years, Singaporeans have found themselves at the center of a global internet crime problem. A wave of digital scams has swept the island, turning its residents into the most vulnerable group among the developed economies of the world. While fraud was once an episodic phenomenon, today it has taken on the characteristics of a systemic threat.

When Fraud Becomes an Industry: The Scale of the Problem in Singapore

The numbers are staggering: last year, victims of online crimes in Singapore lost 1.1 billion SGD — a 70 percent increase compared to two years earlier. The police recorded 51,501 cases of fraud, which is 10 percent higher than the previous year’s figure. However, these figures only represent the tip of the iceberg: according to the Global Alliance against Fraud, the actual number of victims is twice as high, as two-thirds of those affected do not report to law enforcement at all.

In a global context, Singaporeans set a grim record. In 2023, they became residents of the country with the highest average loss per scammer — 4,031 USD per person. This figure is nearly 7 percent higher than in Switzerland and 16 percent higher than in Austria. Experts have expressed concern over the scale of the problem, calling it one of the most serious socio-economic threats in the region.

From Artificial Intelligence to Deepfake: How Technology Serves Criminals

Fraudsters are evolving faster than protection systems. In March of this year, the Monetary Authority of Singapore (the country’s central bank) issued a warning about a new wave of attacks in which criminals use artificial intelligence tools and deepfake video technology to impersonate government officials. Using these tools, scammers direct victims to transfer large sums from corporate accounts.

The speed at which stolen funds circulate is especially dangerous. On average, criminals need only 30 minutes to launder stolen money — a narrow window of opportunity that even advanced fraud detection algorithms cannot always catch in time.

The scale of operations is impressive: Meta, the parent company of Facebook, reported that since the beginning of the year, it has discovered and shut down over 7 million accounts linked to scam centers located in Cambodia, Laos, Myanmar, and the Philippines. These centers operate as well-organized enterprises, often managed by the victims of human trafficking themselves.

Why Trustfulness and Wealth Become a Dangerous Combination

The paradox of Singapore’s situation is that its residents — usually educated, technologically savvy, and law-abiding — are especially vulnerable to scams. One expert working on asset recovery in legal cases noted a paradoxical pattern: “They are wealthy and at the same time trusting.”

Nik Corten, Assistant Director of Interpol’s Financial Crimes Unit, identified Southeast Asia as a primary hub for large-scale scam organizations. In particular, Southeast Asia has become the epicenter of so-called “romance” scams, phishing, and impersonation of officials.

A real case vividly demonstrates the psychological mechanism behind this phenomenon. Lawrence Pang, a well-known Singaporean actor, met a young woman named Mika on a dating site. After several months of communication, Mika convinced the 78-year-old actor to invest nearly 40,000 SGD in a cryptocurrency project in the e-commerce sector. Only when Pang tried to access his investment and video-called Mika did he realize that the person on the screen looked nothing like the woman in the photos.

The high level of law-abidingness among the local population paradoxically works against them. Scammers impersonate police, government agencies, and financial institution employees, and Singaporeans, due to their cultural characteristics, tend to trust these authorities more easily. Last year, more than 1,500 cases were recorded where criminals posed as representatives of the Fraud Prevention Center — the very agency that is supposed to protect the population.

Banks and Platforms: Fighting an Invisible Enemy

The digital transformation of the banking system, aimed at increasing speed and convenience, inadvertently created ideal conditions for criminals. Money circulates so quickly that protection systems simply cannot keep up. Loretta Yuen, Chair of the Fraud Prevention Committee at the Association of Banks in Singapore, noted: “When the victim believes they are acting on the bank’s instructions, it is almost impossible to stop them, especially in cases of romance scams, investment schemes, or impersonation of officials.”

Currently, banks are implementing countermeasures, adding artificial delays to transfer systems — so-called “friction” — which allow for additional security checks and give victims time to reconsider.

Most attacks occur via Facebook, WhatsApp, and Instagram. Meta actively invests in technologies to detect and remove scam content, but criminals constantly adapt their methods. In some cases, scammers even use fake notifications from police and government agencies, creating an entire parallel system of digital authorities.

When a Warning Becomes the Main Weapon

Reflecting on his experience, Lawrence Pang recommends a simple but effective rule: if a conversation or message involves money or cryptocurrency, it should trigger suspicion. He regrets not noticing many warning signs: a phone number supposedly from a Filipino company with a Japanese country code, a request to transfer funds in cryptocurrency, constant excuses about being unable to meet in person.

The Singaporean government is even considering extreme measures — physical punishments for organizers of scam networks. Yuen expressed support for such measures: “We believe that physical punishment is a powerful deterrent.” However, the expert community points out that without systemic improvements in digital literacy and increased public awareness, punishing criminals will only be a symptomatic treatment.

Although most recorded cases involve sums of less than 2,000 SGD, thousands of people, including quite educated professionals, have handed over all their savings to scammers. The main problem lies in this paradox: wealth and technological development do not guarantee protection against the evolving methods of digital criminals. Singaporeans, like residents of other developed countries, need continuous improvement in digital security and critical thinking in the information environment.