Scam Sign: Tempting Offers – E-Commerce Scams

The Five Stages of an E-Commerce Scam

1. Advertising
2. Grooming
3. Dealing
4. Demanding
5. Realisation

Key SCAM SIGNS

It is likely a scam if a seller:

1. Offers the item/service at an attractive price for a limited time.

2. Asks you to make payment directly to him, and not through the platform’s secure payment option.

3. Needs you to click on links or install a third-party app sent via text messages to make payment or receive refunds.

4. Asks you to pay additional customs or delivery fees after the deal is confirmed.

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Accompanying Advisories

ADD:

• Anti-virus software to your devices (see recommendations by CSA).

• 2FA or multi-FA to your online accounts and Money Lock to your bank accounts.

• Transaction limits to your payment accounts (bank, PayNow and PayLah).

CHECK:

• Only install apps from official app stores.

• e-Commerce platforms’ Transaction Safety Ratings at go.gov.sg/mhatsr.

• Pay using secure payment options offered by the platform.

• Do not click on links or scan QR codes sent via text messages by sellers.

• Never disclose your personal information, internet banking and social media account details, and One-Time Passwords (OTPs) to anyone.

• With someone you trust, talk about the offer.

• Call the Anti-Scam Helpline (1800-722-6688) to check if you are unsure.

TELL:

• Warn friends and families about this scam encounter.

• Flag any suspicious sellers to the e-commerce platform.

• Call your bank immediately and make a police report if you think you have fallen victim.

The 5 Stages of E-commerce Scam

Discover the techniques behind the scam and red flags to look out for

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1. Advertising

Beware of scammers selling fake products and services online.

Popular platforms used by scammers:

• Carousell (32.28%)

• Shopee (27.95%)

• Facebook (18.50%)

Techniques used by scammers:

• Unbelievable Deals:
  Scammers tempt victims with prices even lower than those of second-hand sellers.

• Being Relatable:
  Scammers use likeable usernames to relate to victims.

• False Truths:
  Scammers generate fake reviews to build their credibility.

• Legitimacy:
  Scammers impersonate real companies to gain victims’ trust (e.g., claiming to be a Trusted Partner or Certified Distributor).

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2. Grooming

Fake Offers:
Scammers will lure victims with perks to deal directly with them and off-platform.

Misrepresented Goods:
Scammers show proof of authenticity like warranty cards or receipts to convince victims that the products are genuine.

Techniques used by scammers:

• Assurance:
  Scammers will also assure victims that they are genuine via text messages.

• Urgency:
  Scammers will pressure victims into making hasty decisions with limited-time offers.

Example tactics include using names like:

• "Central Outlet – 43 Orchard Road"

• "Electronic Official Store – Trusted SG Store"

• “If you do a direct transfer now, we’ll offer you a better price with free delivery fee :)”

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3. Dealing

When asking for payment, scammers may show receipts and tracking numbers to gain trust.

Popular Payment Modes:

• Bank Transfers – 76.53%

• PayLah!/PayNow – 16.90%

• Cash on Delivery* – 2.82%

• Western Union – 1.41%

• Others – 2.34%

*Mostly related to misrepresented goods

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4. Demanding

Techniques used by scammers:

• False Truths:
  Once a victim has made an initial payment, scammers may demand additional payments citing reasons like taxes or insurance.

• Emotions:
  Scammers instill fear in victims by threatening to harass them and their family or publishing their personal information.

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5. Realisation

Victims realise they have been scammed through:

• Not receiving the product

• Being asked to pay more money

• The scammer not replying or blocking them on messaging apps

• Not receiving a refund on their incomplete purchase