FT article describes Singaporeans as ‘rich and naive' amid S$1.1 billion lost to scams in 2024

Online Citizen​

2 days ago

An article published by the Financial Times (FT) has cast a harsh spotlight on Singapore's worsening online scam crisis, describing the Republic as being engulfed in a 'scamdemic'.
According to the FT report published on 26 May 2025, Singapore's unique blend of affluence, high digital connectivity and strong social trust has made it a fertile target for international scam syndicates.
The article, titled 'Rich and naive': why Singapore is engulfed in a 'scamdemic', was authored by FT Singapore correspondent Owen Walker.
It portrays the situation as a national emergency, driven by complex factors deeply embedded in Singapore's social and economic fabric.
Referencing figures from the Singapore Police Force's annual scam report released on 25 February 2025, the article noted that scam victims in Singapore lost a total of S$1.1 billion in 2024 — a staggering 70% increase from the S$651.8 million lost in 2023.
Walker pointed out that Singaporeans were the most heavily scammed globally on a per-person basis, with each victim losing an average of US$4,031 — the highest reported figure among countries surveyed.
Scam surge framed as 'national crisis' rooted in social and economic traits
The FT article highlights that this is only a fraction of a massive global criminal enterprise, estimated to be worth US$1 trillion.
Yet, it argues that Singapore's demographic and behavioural profile — described by one asset recovery professional as 'rich and naive' — leaves its citizens particularly exposed.
A prominent example cited was veteran actor Laurence Pang, who lost nearly S$40,000 in a cryptocurrency-linked romance scam, despite his profile and awareness.
The article uses this to illustrate how even cautious and educated individuals are vulnerable to today's sophisticated frauds.
True scale of scam losses likely exceeds reported figures
Crucially, the FT notes that many scams go unreported, meaning actual losses may be far higher than official statistics indicate.
The piece also turns its focus to where these scams originate. It identifies sprawling scam centres operating from Cambodia, Laos and Myanmar — often staffed by individuals who are themselves victims of human trafficking.
Nick Court, assistant director of financial crime at Interpol, was quoted as saying that Southeast Asia is now a major hotbed for romance, impersonation and phishing scams. These call centres, he added, are responsible for much of the fraudulent activity impacting victims globally.
In Singapore, while most scams result in losses below S$2,000, thousands of victims have been tricked into handing over their life savings.
Scammers often pose as bank representatives, government officials, or even law enforcement officers.
The most common scam categories include ecommerce fraud, job scams, romance scams, impersonation of government officials, malware attacks, and business email compromises.
In over 80% of reported Singaporean cases, the victims are persuaded — or psychologically manipulated — to transfer money or crypto assets themselves.
The rising use of artificial intelligence by fraudsters has added further complexity.
In March 2025, the Monetary Authority of Singapore warned that AI-generated content, including deepfake videos, was increasingly being used to impersonate officials and solicit fraudulent transfers.
The report noted that the country's rapid adoption of digital banking, though efficient, allows for money to be moved out of the system with alarming speed — typically within 30 minutes. This makes recovery efforts extremely difficult.
Emotional manipulation leaves victims powerless at final stage of scam
Loretta Yuen, chair of the fraud committee at the Association of Banks in Singapore, told FT that victims are often 'under such a heavy spell' by the time they reach the bank, that halting the transfers is nearly impossible — especially in scams involving romance, investments, or impersonation.
Authorities said that most scam contacts are initiated via Meta-owned platforms such as Facebook, Instagram, and WhatsApp.
Meta has claimed it is actively tackling the issue, stating that over 7 million scam-linked accounts — mostly based in Myanmar, Laos, Cambodia, and the Philippines — have been identified and removed in 2024 alone.
Ironically, even anti-scam initiatives have been hijacked. The FT reported that scammers have impersonated Singapore's own Anti-Scam Centre, calling victims while pretending to be police officers.
In 2024, more than 1,500 such impersonation scams were reported to the police.
During Parliament sitting in March, then-Minister of State for Home Affairs and Social and Family Development, Sun Xueling, announced that Singapore would consider imposing caning in severe scam cases, noting the immense financial and emotional harm inflicted.
She also announced heightened efforts to crack down on money mule activity and enforce stronger deterrents through expanded investigative capabilities.
Even Singapore's elite fall victim to sophisticated investment scams
The recent surge in scams serves as a stark reminder that even Singapore's legal and corporate elite are not immune to complex financial fraud, highlighting that wealth and status offer no safeguard against deception.
Among the most prominent cases is that of Pek Siok Lan, general counsel for Temasek Holdings, who was reportedly cheated of S$5.5 million. She was one of several victims named in fresh charge sheets filed against Singaporean businessman Ng Yu Zhi in 2021.
Ng stands accused of orchestrating a S$1 billion investment fraud through his companies under the Envy Group. He allegedly lured hundreds of investors with claims of lucrative nickel-trading deals — which were later revealed to be fictitious.
Other high-profile victims include criminal lawyer Sunil Sudheesan and former Law Society president Thio Shen Yi, who were allegedly defrauded of S$1 million and S$87,000 respectively.
Senior figures in the investment world were also targeted: Vickers Capital Group chairman Finian Tan was allegedly swindled out of US$19.2 million, while Chuan Hup Holdings CEO Terence Peh reportedly lost S$3 million.
The scale of deception prompted at least four lawsuits against Ng and Envy Global Trading, with investors seeking to recover some S$50 million. Authorities seized about S$100 million worth of Ng's assets in 2021.
The fraudulent activities took place between 2016 and 2021.
In April 2025, a court-appointed liquidator testified that the nickel trades never existed and characterised Ng's business as a Ponzi scheme in layman's terms.
Ng is accused of using investor funds to bankroll a lavish lifestyle, including over S$21 million spent on nearly 20 luxury cars.