E-Commerce Scams in Singapore: Why Gen Z Is at High Risk

In recent years, Singapore has witnessed an alarming surge in e-commerce scams, with young adults—particularly digital natives—emerging as frequent victims. This paradoxical trend raises concerns about the vulnerabilities of a generation presumed to be adept at navigating the online landscape. While Gen Z and Millennials have grown up with technology at their fingertips, their overconfidence and emotional buying behaviors make them prime targets for online fraud.

Consider the case of Roo, a 21-year-old Singaporean born in 2003, who identifies as part of Generation Z. In September 2023, she was eager to attend Taylor Swift’s highly anticipated "The Eras Tour" in Singapore. After missing out on official ticket sales, she turned to alternative platforms and found a promising deal on a Telegram group named "NTU Marketplace." A seller, known only as "A," offered two coveted Category 1 tickets at a negotiable price.

Roo’s case is far from isolated. In fact, e-commerce scams have become one of the most prevalent forms of cyber fraud in Singapore. According to the Singapore Police Force’s mid-year 2024 crime report:

- The total financial losses incurred amounted to a staggering S$385.6 million, highlighting the significant impact on victims.

- E-commerce scams accounted for 7,250 cases, making up 27.3% of all scam-related incidents.

- Concert ticket scams, like Roo’s case, were among the top three categories of fraudulent transactions, alongside online shopping scams involving electronics and fashion items.

- The most commonly used scam platforms included Telegram, Facebook Marketplace, and Carousell, where scammers posed as legitimate sellers or buyers.

- This data underscores the urgent need for increased consumer vigilance and robust protective measures.

One might assume that younger individuals, having grown up in the digital age, would be less susceptible to online scams. However, studies show that Gen Z and Millennials remain highly vulnerable due to a combination of psychological and behavioral factors:

- Emotional Buying & FOMO (Fear of Missing Out) – Young adults are more likely to make impulsive purchases, especially when it comes to concert tickets, limited-edition sneakers, and gaming devices. Scammers exploit this urgency by pressuring victims into quick payments.

- Reliance on Peer Recommendations – Many Gen Z shoppers trust online communities and Telegram groups for deals, assuming that platforms used by peers are safe. However, scammers infiltrate these networks, creating fake profiles to build credibility.

- Preference for Non-Traditional Payment Methods – Many young buyers opt for direct bank transfers, PayNow, or cryptocurrency payments instead of secure payment gateways like PayPal or credit cards, which offer fraud protection. Once money is transferred via these methods, it is almost impossible to recover.

Recognizing the growing threat, the Singapore government and law enforcement agencies have implemented several measures to curb the rise in scams. Among them is ScamShield, a mobile application developed by the Singapore Police Force (SPF) and the National Crime Prevention Council (NCPC) to provide real-time scam detection and prevention.

- Call Blocking: Identifies and blocks scam calls from numbers flagged by the authorities.

- SMS Filtering: Uses AI technology to detect and filter scam messages before they reach users.

- Scam Reporting: Allows users to report suspicious numbers or messages, contributing to a centralized scam-monitoring system.

- Since its launch in 2020, ScamShield has blocked over 2.5 million scam calls and messages, preventing an estimated S$100 million in potential fraud losses. In August 2024, the app was enhanced with machine-learning fraud detection, making it more effective against evolving scam tactics.

In addition to technological solutions, the SPF promotes the ACT framework, which encourages individuals to take proactive steps in preventing scams:

- Check: Verify the legitimacy of deals by using official sources like the Scam Alert website (www.scamalert.sg) and checking reviews.

- Tell: Report scams to the police and inform friends and family to prevent others from falling victim.

By implementing the ACT framework, Singapore aims to empower individuals with practical tools to protect themselves from online fraud.

Roo’s experience serves as a cautionary tale for all digital natives. Despite their familiarity with the online world, young adults must remain vigilant and skeptical of deals that appear too good to be true. Here are some additional tips to stay protected:

- Use Secure Payment Methods – Always opt for credit cards, PayPal, or escrow services that offer refund policies in case of fraud. Avoid PayNow or direct transfers.

- Beware of Social Engineering Tactics – Scammers often pretend to be part of official organizations, use fake identities, and create urgency to pressure victims into quick decisions.

- Stay Updated on Scam Trends – Follow government alerts and cybersecurity advisories to learn about new scam tactics.

- Report and Warn Others – If you encounter a scam, report it immediately to the SPF and warn your social circles to prevent further victims.

While technological advancements and digital literacy have transformed the way we interact and transact, they have also opened new avenues for fraudulent activities. The assumption that being digitally savvy protects against scams is a dangerous misconception.