Facebook Marketplace and Carousell score the least for its anti-scam measures

Carousell and Facebook Marketplace have been ranked the lowest in six e-commerce platforms for their anti-scam measures that ensure the security of online transactions, according to the Inter-Ministry Committee on Scams (IMCS) in a statement. 

IMCS was reporting the findings from the 2023 E-commerce Marketplace Transaction Safety Ratings (TSR) which is a report published yearly to update the ratings assigned to major e-commerce platforms and the security measures they have in place. The report was first launched in May last year as it was revealed that e-commerce scams are one of the top scam types in Singapore. 

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In 2022, there were 4,762 reported e-commerce scam cases, an increase of 74.5% compared to 2,729 cases in 2021. The majority of e-commerce scams reported in 2022 – about 62% – were perpetuated on Carousell and Facebook, according to IMCS.

These scams generally involve the sale of goods and services online, where said goods and services are not delivered after payment has been made.

The TSR covers e-commerce marketplaces that facilitate online transactions from multiple sellers to multiple buyers, with a significant local reach or a significant number of e-commerce scams reported. 

The overall ratings for 2023, which are unchanged from last year, are as follows:

The overall safety rating assigned to each marketplace indicates the extent to which they have implemented measures that are critical to safeguard against e-commerce scams, namely, user authenticity, transaction safety, availability of loss remediation channels for consumers, as well as the effectiveness of their anti-scam measures.

The ratings range from one to four ticks, with four ticks being the highest rating. E-commerce marketplaces with all the critical anti-scam measures in place, and which as a result see a negligible number of scams on their platforms, will be awarded the full four-ticks.

Consumers should exercise greater caution when transacting on marketplaces without the above measures in place, IMCS said. 

The results come just months after the Ministry of Home Affairs (MHA) launched a national anti-scam campaign with the tagline “I can ACT against scams”, which encourages members of the public to take three key actions – “Add, Check, and Tell” – to protect themselves against scams.

Under “Check”, consumers are encouraged to check the TSR for platform ratings and availability of critical safety features when transacting online. 

It also advised users to look out for seller accounts that have their identities verified against Government-issued documentation by the platforms when transacting online and to use secure payment options when making online purchases. 

It noted that Shopee has started to mandate the verification of identities of sellers based on Government-issued documentation since December 2022, before allowing them to list their products on its platform. Carousell on the other hand recently launched its“Certified” programme for second-hand luxury bags, mobile phones, and cars that have been checked for quality and authenticity before they are sold by Carousell Official Stores or authorised Carousell Certified Partners. All Certified luxury bags and mobile phone listings have money-back guarantee for buyers who are not satisfied with their purchase.

Lazada also recently launched a buyer confirmation feature in December 2022, which holds payment to the seller for a Confirmation Period. Payment is only released when the buyer has confirmed receipt and is satisfied with the order, or after the Confirmation Period.

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