A lot of money has been lost due to scams in Singapore recently. Scammers are becoming savvier.

The Singapore Police Force estimates that SGD 82 billion was lost to the ten most ubiquitous scams in the first half of 2020 alone. That’s an alarming 97.1% increase from the same period in 2019.

Financial crime is at an all-time high, which means that you, your family members, your friends, or your colleagues may encounter a scam. This could be an investment scam, a foreign exchange scam, or a scam involving signing up for a platform that will compromise your banking details.

One of the most important financial literacy lessons Singaporeans should learn now is how to identify a scammer. Here’s a short guide on how to spot the red flags that distinguish a scammer from someone who is presenting you with a legitimate financial opportunity.

They Aren’t Speaking from a Place of Repute

One of the most accurate indicators that you’re dealing with a financial scammer is that they aren’t contacting you from a place of repute. It says a lot if they are unwilling to discuss the opportunity within their place of business.

Be wary if the person is proposing a meeting in a coffee shop or would only talk to you through a messaging app. Their choice of distance and anonymity when discussing an important financial opportunity may mean that they have something to hide.

They Use the Bandwagon Argument to Sell the Arrangement

If someone comes up to you to pitch an arrangement, note the kind of arguments they use. It’s not a good sign if the strongest argument they can come up with for the investment is the bandwagon argument.

Everyone’s doing it, they may say, and so that means that you should too.

Just because everyone may be doing it doesn’t immediately attest to the soundness or logic of the financial investment or opportunity. If the purported financial representative or agent has nothing to fall back on aside from that, end the discussion with them there and then.

They Pressure You to Make Decisions Quickly

Another red flag that you should pay attention to is the use of pressure tactics. Does the person keep repeating that you can only sign up for a limited time? Are they selling the financial opportunity as an all-or-nothing kind of arrangement? Are they asking you to commit too much too fast, for example requiring you to sign up for a new platform with your banking details?

If the answer to any of these is yes, it’s likely that this person is trying to rope you into a scam. Always be wary of people who cannot seem to respect your right to make important financial decisions in your own time.

They Are Uncomfortable with Further Scrutiny

Common sense dictates that you wouldn’t enter into a business relationship without knowing your business partner. The same should apply to a legitimate investment or financial arrangement—you deserve to know who’ll be handling your money.

A reputable agent or financial representative would be happy to volunteer their credentials, as well as more information about their organization. But a scammer would be afraid of further scrutiny, as they know it’d affect your decision to transact with them.

Ask whether the person or the organization they say they represent is accredited by Singapore’s regulators. Legitimate individuals and organizations should be in the directory of the Monetary Authority of Singapore (MAS). If they seem to be evasive about such credentials, just say you’re not interested and cut off the conversation.

Their Promises of Quick Wealth Seem Too Good to Be True

Most financial scammers do the same song and dance. They offer an arrangement of high returns now, with virtually no risk attached.

The term for this is “phantom riches,” which seems rather apt—you may never see this promise materialize in your lifetime.

All legitimate investment involves risk, and someone who is not upfront about that may not have the best intentions with your money. Just remember: if get-rich-quick, no-strings-attached seems like an impossible promise, it probably is. You should warn the most vulnerable among your contacts about this.

What Should You Do if You Spot a Financial Scammer in Singapore? 

If any of the situations mentioned above have transpired, you’ve likely come into contact with a financial scammer. What action should you undertake now? Here are five things you can do immediately in the aftermath.

• Check to see if they are misrepresenting an actual financial institution. In some cases, scammers may purport to be part of a legitimate organization without the latter’s knowledge. Contact that organization and let them know that people are misusing their good name for nefarious purposes.
• See if the scammer is already on a blacklist, like MAS’s Investor Alert list of suspicious persons. Spread the word to your contacts.
• Be updated on the evolving nature of financial scams both here in Singapore and abroad, as the game is always changing. Scammers are getting dangerously creative at fooling new victims and fleecing them of their hard-earned money.
• If you think you have been scammed or suspect that someone you met is a scammer, call the National Crime Prevention Council hotline, 1800-722-6688. You can ask them for advice or start the process of reporting the scammer.
• Advocate for the need to protect oneself from financial scams. Warn your loved ones who may be susceptible to scammers’ tactics.

With this information at this disposal, you should be better prepared to guard yourself against financial scammers.

Share the knowledge so more Singaporeans can avoid falling for scams.

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