Scammers Find ‘Jurisdiction of Choice’ in Singapore

Singapore’s status as a financial hub has also made it a popular destination for scammers.

That’s according to a report Sunday (Nov. 16) by the Financial Times (FT), which said authorities in the city-state are engaged in an ongoing “game of whack-a-mole” with fraudsters, seeking vulnerabilities to exploit.

“The problem Singapore faces is that as a trading nation, it is built around inflows and outflows — its success makes it vulnerable to money laundering,” Rory Doyle, head of financial crime policy at compliance software company Fenergo, told the FT.

“Singapore’s geographical location and reputation within Asia make it a jurisdiction of choice for regional criminals,” added Chengyi Ong, head of Asia-Pacific policy at Chainalysis.

Highlighting the issue, FT said, is last month’s seizure of assets linked to Cambodia’s Prince Group, identified by British and American authorities as a “transnational criminal empire,” operating investment scams.

In that case, the U.S. government seized $15 billion in bitcoin and charged alleged ringleader Chen Zhi, a 37-year-old Chinese-born Cambodian national, with conspiring to commit wire fraud and money laundering.

Chen and his cohorts are accused of running a widespread international criminal empire, forcing trafficked workers at scam compounds in Cambodia to steal billions of dollars from victims around the globe. From there, the group allegedly laundered the proceeds through entities throughout Asia and offshore financial centers.

FT pointed out that Singaporeans have been especially vulnerable to online frauds — losing $768 million last year, with the country also an enticing destination for the criminals.

“Criminals don’t want to lose their money, and they see Singapore as the safe haven in Southeast Asia,” said Doyle.

In related news, recent research from PYMNTS Intelligence and Block shows that scams are now striking against consumers across all age groups and income brackets.

The research found that younger, affluent and college-educated consumers now face the highest scam exposure, uprooting a long-held assumption about fraud vulnerability: that tech-savvy individuals are well-suited to fend off bad actors.

“Though fraud tactics multiply, three categories dominate: identity theft, fake debt collection and fake eCommerce marketplaces,” PYMNTS wrote. “The report said more than 80% of scam incidents involve some form of impersonation, and nearly two-thirds of victims send funds within 24 hours.”

The research found scam exposure of around 24% among millennials, followed by Gen Z at 22%. That’s compared with just 14% among baby boomers and seniors. College-educated consumers show an exposure rate of 22% versus 18% for consumers without a college degree.