Financial Crime World

Singapore Battles Record-breaking Financial Crimes Amidst Pandemic

Singapore’s financial sector encountered a significant surge in criminal activities since the onset of the coronavirus pandemic, with a series of record-breaking money laundering cases and online scams.

Largest-ever Money Laundering Case in 2023

Singapore faced its largest-ever money laundering case in 2023, with over US$2.2 billion seized in an ongoing investigation. This significant challenge for the city-state highlighted the increased criminal activities within its financial sector.

Online Scams on the Rise

Despite the rise in scams, the monetary losses decreased slightly. According to the Singapore Police Force, reported cases rose by approximately 47% to 46,563 in 2023 – the highest since the police started recording this type of crime in 2016. Monetary losses amounted to S$651.8 million in 2023, a decrease from S$660.7 million the previous year.

Common Scam Types

One common type of scam in Singapore involves scammers asking victims to perform tasks for a commission, with activities such as liking social media post, reviewing hotels, or completing surveys. After requesting funds from victims’ bank accounts, scammers eventually vanish, leaving victims with financial losses.

Another prevalent scam type involves phishing and investment scams.

Phishing Scams

Phishing scams saw a 16.3% decrease in 2023, according to the police. However, the potential damages in such cases are significant, as victims either give away or have their banking credentials stolen, leading to unauthorized transactions.

Investment Scams

Investment scams almost tripled in 2023. Singapore’s Monetary Authority (MAS) considers these scams a major concern, since digitally-enabled scams involving phishing and malware can lead to significant financial damages.

Counteracting Phishing Scams

In response to the growing concern over phishing scams, the Monetary Authority of Singapore (MAS) published a consultation paper in October 2023, assigning duties to financial institutions and telecommunication firms to counteract these scams. The MAS detailed financial damages that would be paid to affected victims.

Key Takeaways from the Consultation Paper:

  • Phishing and malware scams are of grave concern.
  • Financial institutions and telecommunication firms must counteract these scams.
  • The MAS will detail financial damages to be paid to affected victims.

Bolstering Security Against Threats

To address the threats of phishing and investment scams, it’s crucial to:

  1. Increase security standards on mobile operating systems and devices.
  2. Fortify anti-malware controls, fraud surveillance, and detection capabilities for banks.

In response to these concerns, major retail banks in Singapore like DBS, OCBC, and UOB introduced the Money Lock feature to secure a segment of customers’ bank savings that cannot be transferred digitally.

Since November 2023, over 61,000 Money Lock accounts have been set up, safeguarding nearly S$5.4 billion. Other major retail banks are expected to offer the feature by mid-2024.