How Scams Have Evolved Over Time in Singapore

Introduction

 

The evolution of scams in Singapore has seen dramatic shifts, with a 16.3% increase in cases and $385.6 million lost just in the first six months of 2024 (The Straits Times, August 22, 2024). This highlights the scope and prevalence of scams in Singapore, a nation that has rapidly embraced digital technology.

 

But, how has scams evolved over time in Singapore? As part of this 3-article series, you will find out the evolution of scams over time, from roadside scams to AI-powered ones. By the end of this article, you will know about scams in the early days of pre-2000. Look out for our future posts where we continue with how scams evolved into the present and also peek into the future.

 

In the early days of pre-2000s, discovering that your bank account had been fraudulently drained without your active participation was something beyond anyone’s imagination.

 

According to Infocomm Media Development Authority (IMDA), which measures digital access, essential digital skills for daily living, and attitudes towards digital technologies in Singapore,

• for June 1997, there were

• 510,000 mobile phone subscribers, and

• 196,000 total internet dial-up subscribers;

•  for December 2024, there were

• 9,960,700 mobile subscriptions, and

• 12,733,000 total broadband.

 

Early Scams in Singapore's History (Pre-2000s)

Traditional Scam Tactics in Singapore in the Pre-2000s

 

Before 2000, scams in Singapore mainly used traditional methods such as phone scams, and fraudulent investment schemes, targeting individuals seeking quick financial gains or those easily manipulated through urgency or fear.

Traditional oriental metal hanging decor for New Year · Free Stock Photo

Alternative text: Coin blessing scams targeting the elderly in Singapore

Physical scams 

• In the 1970s-1980s, "coin blessing" scams targeted at elderly Chinese Singaporeans were common with scammers posing as so-called feng shui masters claiming they could bless money, either for good luck, prosperity or to ward off evil spirits, but was in fact an elaborate piece of criminal street theatre, involving gang members acting out a well-rehearsed script in the local vernacular, either Cantonese or Hokkien, for the unsuspecting victim. Reasons why the scam was so effective ranged from the victim dealing with people that mirrored them in terms of their looking like the victim, often of similar gender, similar age, and speaking the victim’s language.

 

• Fake lotteries or 4D lottery scams where victims were told they had won lottery but needed to pay "blessing fees" in order to receive the winnings or a portion of the winnings. (Source: Yahoo news)

 

Mystical Tarot Cards with Crystals and Candles · Free Stock Photo

Alternative text: Fortune telling

• Fortune-telling scams with scammers operating near temples in Waterloo Street and Bugis, targeting the superstitious with predictions of misfortune that could be "averted" for a fee.

 

Paper-based scams 

• Fraudulent investment schemes promising high returns with little risk, leading to substantial financial losses for victims, such as the Gold Guarantee, a gold buyback scheme, where investors were promised 1.7 percent discount off the already marked-up price, but which collapsed after the gold market crashed and a glut of investors asking for the return of their money.

 

• Advance fee frauds where the target is tempted to part with his money to the fraudster in the hope of realising a significantly larger gain. In another variation, scammers “guaranteed” or represented a “high likelihood of success” to targets that they could arrange a loan or credit for them, regardless of their credit history and always required payments up-front, before the lender was identified and the application completed.

 

• Pyramid or Multi-Level Marketing Selling schemes would require participants to pay an upfront charge, in return for financial rewards for each additional participant recruited, eventually collapsing when they ran out of new recruits, resulting in those salespersons at the bottom of the pyramid losing all their upfront charges.

 

Scams using phone (SMS) or emails:

 

• Family emergency scams, where the victim received a communication from someone claiming to be a relative or someone else pretending to be an authority figure (like a doctor or law enforcement) and falsely claiming that your relative was in some kind of legal trouble or physical danger and that you had a limited amount of time to send them money to help your family member. Sometimes, scammers used spoofed e-mail addresses, posing as one's contacts to appear as if a relative, colleague or friend was requesting money for urgent personal needs.

 

Societal and Economic Impact

 

Before the digital age, scams were limited in reach due to physical constraints, but the effects to affected communities were just as devastating, often resulting in confusion, shame leading to low self-esteem and isolating behaviours, and helplessness. Seniors may also sink into depression with the risk of suicide, and develop high anxiety in the future when interacting with others. The societal impact of scams in Singapore before 2000 was profound, causing emotional distress and financial ruin.

 

Back then, coffee shops or kopitiam as they are locally known, besides being the non-alcoholic version of a watering hole, did double duty as news centers and even matchmaking venues. It was common to visit coffee shops to catch up on current events, either by listening to the radio and/or by reading the newspapers provided by the coffee shop, literally hanging out with friends and acquaintances, and not just for a meal.

 

With only one available set of newspaper bought by the owner, the patrons of the coffee shop would take turns reading different pages of the newspapers before exchanging their page with someone else, chatting with the guy at the next table. It’s the face-to-face pleasure of socializing and the passing-on of news by word of mouth.

 

It was in places like these that schemes such as tontines, pyramid schemes and Multi-Level Marketing were born and perpetrated.

 

As most of the coffeeshop patrons met almost daily, they became more comfortable and trusting with each other. If one appeared as an “expert,” he would be looked up to and his words taken as gospel truth, even though the so-called expert may just be a well-read person, with limited knowledge of the subject matter.

 

Scammers then were largely successful as there was

• Strong respect for authority figures and experts

• "Kiasu" or the fear of missing out mentality

• Reluctance to report losses due to "saving face"

 

 

Scam Prevention Efforts In The Pre-2000s

As the scam rates in Singapore continue to grow, the Singapore government had to come up with anti-scam measures to protect citizens. More notably, the Neighbourhood Watch Scheme and the Commercial Affairs Department was set up to protect Singaporeans from scams. 

1. The Neighbourhood Watch Scheme (NWS)

 

• The Singapore Police Force (SPF) first launched the Neighbourhood Watch Scheme (NWS) in 1981, to increase cohesion amongst residents of a neighbourhood, so that neighbours would be able to identify and report to the Police suspicious happenings in their neighbourhood, ensuring that residents looked out for one another’s family and property, with immediate neighbours forming informal watch groups.

 

2. The Commercial Affairs Department (CAD)

 

• In 1984, the Commercial Affairs Department (CAD) was established as a specialised agency under the Ministry of Finance to tackle complex commercial fraud cases and according to then Permanent Secretary (Home Affairs) Mr Peter Chan, “to protect the integrity of our financial markets and business environment.” It is now the principal white-collar crime investigation agency in Singapore, investigating commercial and financial crimes and safeguarding Singapore’s integrity as a world-class financial and commercial centre through vigilant and professional enforcement of the laws.

 

Conclusion

As technology advanced, so did scams, making them more difficult to detect, in its various forms. The evolution of scams in Singapore pre-2000s laid the foundation for modern fraud, from coin blessing to pyramid schemes.

Back then in the pre-2000s as now, being informed was and still is, the first line of defence, with the Authorities such as the Singapore Police Force, putting up campaigns and road shows to educate the public on scam awareness.

The advice then is also still valid now – share with friends and relatives, especially those who may be more susceptible to scams, such as youngsters and seniors, as a simple message could save someone from financial and emotional harm resulting from scams.

Scams are evolving quickly, as scammers are becoming sneakier and more sophisticated. Explore the next article where we talk about the next generation of scams.