How to Identify Fake Investment Opportunities in Singapore

The Growing Threat of Investment Scams in Singapore

In 2024, Singaporeans lost a staggering S$1.1 billion to scams, with investment frauds accounting for S$320.7 million – the highest among all scam categories. Four cases alone constituted S$237.9 million (21.4%) of total losses, with three involving cryptocurrency (CNA, 2025)

The question is no longer if but when you will encounter a fake investment pitch! No one is immune.

Demographic Analysis of Victims (SPF Data, 2024)

Age Group	Percentage of Victims	Most Common Scam Type
19 and below (youths)	6.3%	E-commerce scams, Job scams, Phising scams
20 – 49 (young adults and adults)	64.6%	E-commerce scams, Job scams, Phising scams
50-64 (young seniors)	20.7%	E-commerce scams, Investment scams, Fake friend call scams
65 and above (elderly)	8.4%	Phising scams, Investment scams, Fake friend call scams

This guide, tailored to Singapore's unique financial landscape, will help you recognise fake investment opportunities, featuring real-life Singaporean cases, official data, and actionable tips to stay safe.

Understanding Investment Scams in Singapore

An investment scam or fake investment opportunity, with the promise of unrealistic or unverified returns, deceiving individuals into handing over money to scammers. These scams copy legitimate ventures such as stocks, forex, crypto, and even green energy, but are cleverly disguised traps – in reality, "wolves in sheep's clothing."

Common Investment Scam Formats in Singapore

Scam Type	Description	Real Singapore Example	Red Flags
Ponzi & Pyramid Schemes	Using new investors' money to pay earlier ones	Crypto mining firm promised 0.5% daily returns, but was a classic Ponz (Straits Times, 2025)	Guaranteed daily returns, recruitment incentives
Pump-and-Dump Schemes	Artificially inflating asset value before selling off	Telegram groups used to manipulate stocks prices (MAS Enforcement Actions, 2024)	Rapid price movements, intense social media promotion
High-Yield Investment Programs	Offering unsustainable "daily returns"	Offers of 20% monthly returns via messaging apps (The Straits Times, 2024)	Specific return percentages regardless of market conditions
Impersonation Scams	Pretending to be MAS officials or bank representatives	Fake MAS websites and documents. Joint advisory from MAS and Singapore Police (April 2025)	Requests to disclose personal information, such as bank account details, personal particulars, SingPass password or one-time passwords or fees to assist in investigations.

Emerging Investment Scam Trends in Singapore (2024~2025)

The investment scam landscape in Singapore continues to evolve, with several emerging trends in 2024~2025:

1. AI-Generated "Financial Experts"

Deepfake technology is used to create convincing videos of fake or impersonated financial professionals, promoting “risk-free” investments on TikTok and Instagram.

2. Regulatory Impersonation

Scammers exploited the Register of Representatives online portal to trick victims into believing they are MAS officials. (The Straits Times, 2025)

3. Messaging Platform Investment Groups

Fake Telegram or WhatsApp groups, where “members” share screenshots of their supposed profits, lure victims into scams. Since July 2024, at least 897 cases have been reported, with losses of $36 million. (SPF, 2024), (The Straits Times, 2024)

4. Romance-Investment Hybrid Scams

Scammers build romantic relationships via dating apps, then introduce fake investments. These often involve teams—one builds trust, another poses as a successful investor. (SPF, 2024), (The Straits Times, 2024)

Singapore's Biggest Investment Scam Cases (2024-2025)

📉 The S$125 Million Crypto Nightmare (2024)

A Singaporean investor lost S$125 million in the country's largest crypto scam on record. The victim was gradually lured into a fake trading platform promising 25% monthly returns through a “private Telegram group” filled with supposed success stories (CNA, 2025).

💰 S$32.6 Million Lost in January 2025 Alone

470 cases of investment scams, with victims losing S$32.6 million, were reported in January 2025, with perpetrators approaching victims through social media, communications or dating apps, building rapport and trust before introducing them to investment opportunities. (Business Times, 2025).

The Psychology Behind Investment Scams

Scammers exploit universal psychological biases, often tailoring their approach to Singapore’s contex:

Psychological Bias	How Scammers Exploit It	Singapore-Specific Example
Optimism Bias	Victims overestimate positive outcomes while dismissing risk warnings	"Guaranteed returns like the early days of property investment"
Authority Bias	Scammers impersonate trusted figures or use fake credentials to gain credibility (The Straits Times, 2025)	Fake MAS certificates or claiming to be former GIC/Temasek analysts
Present Bias	Promise of easy, quick money	Appealing to the rising cost of living in Singapore and inflation concerns
Regret Aversion	Creating FOMO through "limited-time offers" forces hasty decisions	"Singapore-only pre-launch closing today"
Halo Effect	Building likability through community infiltration to gain trust	Targeting specific religious communities or alumni networks in Singapore
Social Proof	Fake testimonials create an illusion of widespread success	Fabricated stories of ordinary Singaporeans achieving financial freedom

10 Warning Signs of Fake Investment Opportunities

1. Unrealistic Returns

"Double your investment in 30 days!" If it sounds too good to be true — it is!

Be sceptical of guaranteed returns, especially in volatile markets like crypto, forex, or gold.

Singapore Context: Claims like "15% monthly returns guaranteed regardless of market conditions" or "double your CPF investment in 6 months" are unrealistic, given Singapore's regulated financial environment.

2. Unlicensed Entities

Remember – always verify a company offering investment schemes by checking the following websites from the Monetary Authority of Singapore (MAS):

If the company isn’t listed, don’t engage. (The Straits Times (2024),

3. Unsolicited Offers

Messages on LinkedIn or Telegram beginning with "I noticed you're interested in investing" or "Have you heard about this Singapore government-backed investment?"

Be wary of investment pitches arriving via LinkedIn, Telegram, or WhatsApp from strangers.

4. Urgency and Pressure Tactics

"Only 10 slots left for Singaporean investors!" is a common manipulation technique scammers use to create a sense of urgency or scarcity.

Psychological Trigger: Creating artificial scarcity and urgency to prevent proper due diligence.

5. Vague Explanations

Fake opportunities rely on overwhelming you with terms like “AI arbitrage” or “DeFi staking layer protocols” — without real clarity. “Huh? Cheem leh! Don’t understand. Blur already ah!"

Warning Sign: When asked for specifics, the promoter responds with more technical terms or changes the subject.

6. Unusual Payment Methods

Requests for personal bank transfers, PayNow to individual accounts, or crypto wallet deposits instead of institutional accounts.

Singapore Alert: Per Police joint advisory with MAS, Singapore Government officials, including MAS, will never ask the public to do the following over the phone:

· Ask you to transfer money;

· Ask you to disclose banking details;

· Ask you to install mobile apps from unofficial app stores

· Transfer your call directly to the Police, except when you call 995 for life-threatening emergencies

7. Exaggerated Credentials – Too Many Testimonials, Not Enough Substance

Fake testimonials, unverifiable success stories, and unauthorised celebrity endorsements

Common Tactic: Using AI-generated images of local business leaders or public officials with fabricated quotes about investment opportunities and success.

8. Referral Commissions

Incentives to bring in friends and family, expanding the victim network through trusted relationships.

Warning Sign: Promised bonuses of "3% referral commission" or "extra allocation" for bringing in new investors.

Scam Prevention