Singapore Cracks Down on Financial Crimes Amidst a Surge in Money Laundering and Scams

Singapore, once known for its financial hub status and low crime rate, is currently facing a significant increase in financial crimes since the onset of the coronavirus pandemic. The following sections discuss the surge in money laundering, various types of scams, and efforts to combat these financial crimes.

Money Laundering surge with Largest Ever Seized Case

Singapore, once regarded as a city of low crime, is grappling with an alarming increase in financial crimes. In 2023, the country experienced its largest ever money laundering case, with over US$2.2 billion seized. This complex case is still under investigation, with more details continuing to emerge.

Types of Scams and Their Prevalence

Beyond high-profile money laundering cases, commonplace financial crimes such as online scams persist. In 2023, despite a slight decrease in total funds lost to scams, the number of reported cases increased by about 47% to a record-breaking 46,563. These figures represent the highest number of reported scam cases since the Singapore Police Force began tracking these crimes in 2016.

Common Scams and Modus Operandi

One common type of scam in Singapore involves fraudsters asking potential victims to perform tasks in exchange for a commission:

1. Liking or sharing social media posts
2. Completing surveys
3. Leaving reviews

At some point in the engagement, scammers request access to victims’ bank accounts, promising escalating rewards in the future. After collecting the money, the scammers disappear, leaving victims out of pocket.

Phishing and Investment Scams

Two other prevalent scam types are phishing and investment scams. In 2023, reports of investment scams skyrocketed almost 30% while phishing scams decreased by 16.3%. The Monetary Authority of Singapore (MAS) is proposing that financial institutions and telecom firms share responsibilities to mitigate these threats.

Combating Financial Crimes and Restoring Confidence

As digitally enabled scams pose a significant threat to banking systems and user confidentiality, banks must strengthen their security measures. In response, DBS, OCBC, and UOB introduced a Money Lock feature in November 2023, enabling customers to set aside a protected portion of their accounts that cannot be transferred digitally. Over 61,000 Money Lock accounts have been set up, securing over S$5.4 billion as of February 2024. Major retail banks are scheduled to bring this feature to their clientele by mid-2024. This initiative marks a significant step towards safeguarding Singapore’s financial infrastructure and restoring public confidence.