Number of eCommerce scams in SG doubles in 2023, Facebook sees highest cases

eCommerce scams remain one of the top scam types in Singapore. In fact, in 2023, there were 9,783 reported eCommerce scam cases, a doubling from 4,762 cases in 2022.

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

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These were the results of the Inter-Ministry Committee on Scams' (IMCS) eCommerce Marketplace Transaction Safety Ratings (TSR) 2024 which are ratings assigned to major eCommerce marketplaces based on the latest anti-scam features they have in place to secure eCommerce transactions.

It also found that close to 50% of eCommerce scams reported in 2023 were perpetrated on Facebook, where the number of cases surged to 4,550 from 1,138 in 2022. Carousell comes in second with 2,476 cases followed by Telegram with 787 cases. 

It also revealed overall safety rating which are assigned to each marketplace and indicates the extent to which they have implemented measures that are critical to guard against scams.

The four categories the rating is based on are 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. 

In 2024, Shopee’s rating improved from three ticks to the full four ticks. Similar to other marketplaces which were awarded the full four ticks such as Amazon, Lazada and Qoo10, Shopee has implemented all the safety features deemed to be critical by the Ministry of Home Affairs (MHA).

In particular, Shopee has fully implemented user verification against government-issued documentation for all sellers. The number of reported eCommerce scams on their platform has reduced by 65%, from 311 cases in 2022 to 109 cases in 2023, it said in a statement. 

Carousell has two ticks while Facebook Marketplace has one. 

“In the fight against scams, partners are essential. The government cannot do this alone. On behalf of the IMCS, we would like to thank our partners from the eCommerce industry for working with us on the eCommerce Marketplace Transaction Safety Ratings (TSR) 2024," said Sun Xueling, chairman of the IMCS and minister of state, MHA and Ministry of Social and Family Development.

"I urge all eCommerce marketplaces to implement the critical safety features, specifically user verification against government-issued documentation and secure payment options, to protect their online users from eCommerce scams,” she said.

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