How to Spot Online Scams and Avoid Them

Singapore is one of the safest countries in the world, but online scams are on the rise. In 2023, the number of scams hit a record high, with 46,563 cases being reported, according to a 2024 Straits Times report.^[1] A total of $651.8 million was lost to scammers in 2023 alone.

Most common types of scams in Singapore

Due to the ease with which the internet enables scammers to establish contact with potential victims, most scams nowadays take place online.

According to the Straits Times report, the most common type of scam in 2023 was the job scam, with 9,914 reported cases and a total loss of at least $135.7 million. In such scams, victims are offered fake online jobs, and then frequently asked to transfer money to the scammer’s bank account in order to receive the pay or commissions they have been promised.

The second most common type of scam, whose cases doubled in 2023 compared to the previous year, was the e-commerce scam (or online shopping scam), with 9,783 cases reported and at least $13.9 million lost in 2023. Many people find themselves scammed by online stores that disappear after receiving payment. Scammers purporting to sell concert tickets or heavily discounted items online also run off with deposits, delivery fees, and reservation fees.

Fake friend call scams^[2] came in third, with 6,859 cases reported and over $23 million lost. Such scams involve victims being contacted by scammers posing as friends asking for financial help.

The other most common types of scam include phishing scams, investing scams, malware scams, social media impersonation scams, loan scams, internet love scams and government official impersonation scams.

How to spot online scams and avoid them

1. Verify the source (how to identify a scammer online)

Most online scams start with the receipt of a text message, call or email. Before responding to any solicitations received online, it is important to always first verify the source.

Knowing what the red flags of a scammer can help you avoid falling prey to their tricks. Scammers frequently pretend to be from trusted institutions such as the bank or the government, so you should remind yourself to confirm the identity of the sender no matter how official the communications might seem.

Scrutinise closely any email addresses, URLs, websites or phone numbers, and when in doubt, call the purported source at another number to verify if they have truly contacted you.

2. Avoid sharing personal information

Always be very suspicious whenever you are asked for personal information. Unless you are absolutely sure that you are communicating with a trusted individual or institution, never give out information such as your full name, NRIC number and address.

In addition, you should never, under any circumstances, divulge your passwords to anyone, no matter who they claim to be. The government, statutory boards or professional organisations will never ask you for your passwords.

3. Avoid clicking on links or downloading applications

It’s easy to get scammed by an online store if you’re not careful. Money can be lost simply by clicking on a fraudulent link, even without giving out any personal details or keying in any passwords. This is a common tactic used in online shopping scams, where scammers create fake websites or send phishing emails that mimic legitimate online stores. All it takes is a moment of inattention to click absent-mindedly.

So make it a point to avoid clicking on any unsolicited links, whether received via text message or email, until you have verified the source. If you do accidentally click on a link, avoid keying in personal details until verifying the source of the link and being sure that you have not been led to a phishing site.

4. Know what red flags to look out for

Reading up on the various types of scams out there will help you identify red flags should you yourself be contacted by a scammer.

Other than keeping up with reports about scams in the local news, you can also peruse scam prevention articles published on government websites^[3] describing the various scams that have been reported to the police.

Remember that scammers’ methods are constantly evolving, so it pays to keep yourself up to date with the latest news.

5. Have a strong password

A successful hack can lead to financial loss and even identity theft, so it is important to know how to create a strong password and update your passwords periodically.

A strong and secure password is one that does not contain common or obvious words, patterns and sequences, does not contain information that can be easily guessed such as your initials or birthday, and is unique for each account. To strengthen your password, you can add symbols and a mixture of capital and small letters.

If you suspect you have accidentally logged in to a phishing site, change your passwords immediately and contact the relevant institutions or financial service providers.

6. Download ScamShield

The National Crime Prevention Council (NCPC) and Government Technology Agency have developed ScamShield^[4], a mobile application which can automatically block scam calls, detect scam messages and enable you to report scam calls and messages on your phone.

While ScamShield cannot identify every single scam call or message you receive, it can filter out a great deal of them.

7. Protect yourself and your family with cyber fraud insurance

Even if you know how to spot online scams and how to identify a scammer online, and you’re well aware of what the red flags of a scammer are, it’s still possible to fall victim to increasingly sophisticated scams. Taking the next level of protection with a cyber fraud insurance plan can give you valuable peace of mind.

A cyber fraud insurance plan like HL Assurance’s Fraud Protect360 Plus can protect you from losing money in online scams.

The plan offers protection from unauthorised transactions made due to scams originating via email, messages and WhatsApp, as well as non-delivery of goods within 60 days for online purchases. If you lose money in such scams, the plan will reimburse the amount of money lost. (Love scams are not covered.)

It also offers coverage for cyber extortion in case you are threatened. And if you fall victim to viruses, data loss or identity theft, the plan can cover restoration costs.

If you have any family members who you believe might be vulnerable to online scams, Fraud Protect360 Plus can offer them a layer of protection. For instance, seniors aged 60 and above tend to be more vulnerable to certain scam types, such as social media impersonation scams, phishing scams and investment scams.^[5]

With a plan like HL Assurance’s Fraud Protect360 Plus, you and your family can stay safe from the growing threat of cyber fraud.

Written by Joanne Poh – 4 March 2025
About the author:
Joanne Poh is a freelance writer specialising in insurance, property and personal finance. She has written content for some of Singapore’s most prominent insurers, banks and fintech startups, as well as channels such as MoneySmart, PropertyGuru and The Straits Times. Her work has been featured on portals such as Yahoo!, MSN, AsiaOne and herworldPLUS. As a writer, her mission is to give readers digestible information that can help them make better decisions.

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Most common types of scams in Singapore

How to spot online scams and avoid them