Knowing cyber scams and how to stay safe online

Rising number of cyber scams in Singapore

Scams are the most likely cyber threat to occur in Singapore, comprising more than 94% of cybercrime cases here in 2022¹. Last year, the number of cyber scams surged to an all-time high of 31,728¹, as scammers continuously evolve their tactics. As technology advances and becomes more integrated into our daily lives, the risk of scams only increases. Even AI language models such as ChatGPT and Bard may make it harder to identify a scam as cybercriminals could adapt to these technologies.

In fact, cybersecurity experts have already observed improvements in the language used in phishing scams that coincide with the launch of ChatGPT. As such, we must remain vigilant and keep ourselves informed about the latest tactics used by scammers.

In this article, we will explore five things you need to know about online scams in Singapore.

Five things you need to know about cyber scams

#1: Phishing scams are the most common online scam in Singapore

Today, more and more people are falling for scammers’ deceptive tactics. The most prevalent scams are phishing scams, job scams, e-commerce scams, investment scams, and fake friend call scams¹. According to the Singapore Police Force Annual Scams and Cybercrime Brief 2022, over 74% of the top 10 scam types reported in 2022 were comprised of these scams.

To help you understand these scams, here’s a quick guide explaining what they are:

Note: Based on Singapore Police Force Annual Scams and Cybercrime Brief 2022¹

#2: Digital natives have a higher likelihood of falling for a scam

Contrary to common misconceptions that elderly individuals are the most common victims of scams, people of all ages are susceptible to such schemes. In fact, a recent report from the Singapore Police Force revealed that young adults aged between 20 and 39 account for 53.5% of all scam victims¹, and another study found that those under 25 years old are 10% more susceptible² than individuals aged 65 years and above. These findings challenge the myth that digitally savvy individuals are infallible to scams.

#3: Identifying and avoiding scams is not always easy

Many of us believe we can identify a scam and avoid falling prey to it, but the reality is that scams aren’t all that easy to spot. Scammers’ methods are becoming increasingly sophisticated and novel, which makes it harder for us to detect and prevent their schemes.

In SMS phishing scams, scammers can embed their messages in legitimate SMS threads sent by a bank to trick us into revealing personal information. This can lead to fraudulent transfers from our accounts without our knowledge or consent. Scammers are always ready to leverage the latest technologies, including AI language models and deepfakes.

Our increasingly digital lives have also made us more vulnerable to online scams as we rely heavily on mobile apps, social media, and the internet. Undeniably, online banking and shopping have become integral parts of our daily lives.

However, poor cyber hygiene is one of the main reasons why we fall for scams. In 2021, most online scam victims in Singapore exhibited poor online hygiene practices³ by clicking on pop-up ads or opening emails from unknown sources. Almost half of all scam victims wrongly believed that authorities would send them SMS or emails containing links to verify their information by clicking on them. Complacency⁴ is also another reason for our susceptibility to cyber scams.

#4: Online scams can have both financial and emotional impact

The impact of online scams on individuals cannot be underestimated, given their prevalence in recent years. They can lead to significant financial losses as scammers employ advanced techniques to steal money. For example, in 2022, people affected by phishing scams reported a collective loss of $16.5 million¹, averaging to S$2,325 per person. On the other hand, people tricked by e-commerce scams lost on average S$4,473 per person¹. Although not as staggering as some instances, such as S$149,000 that this man was scammed of, these are still significant amounts. For someone, it could be their first pay cheque, monthly salary or more.

Scams can also have a significant impact on individual beyond just financial losses. Those affected by scams may experience emotional trauma and loss of trust in people. Phishing scams can be particularly damaging as they result in the loss of personal and sensitive information such as login credentials, credit card numbers and personally identifiable information. Furthermore, they may feel vulnerable after falling for a phishing scam.

#5 What you should do when you fall for an online scam

It might be stressful and overwhelming when you’ve realised you’ve been scammed. However, don’t panic; it is important to stay calm so that you can assess the situation and take appropriate actions. Try to recall information about the scam, including the amount of money stolen, if any, when you discovered it, and any messages, emails or notifications that you received.

If your money or personal information was stolen, file a police report immediately. Contact your bank or credit card company to report the fraud and stop further unauthorised transactions. Inform the relevant online shopping platform if you have fallen prey to an e-commerce scam.

Suppose the scam involves accessing your personal accounts, then you should change your passwords immediately to prevent further unauthorised access. In addition, you may want to consider changing your passwords on other personal accounts that share the same passwords and keep a close eye on your accounts to ensure no further fraudulent activities.

Should you have personal cyber insurance?

In today’s digital age, we reap the benefits of digital technology, but expose ourselves to cyber fraud. Unfortunately, cyber scams are becoming increasingly common, however the good news is that there are steps that we can take to safeguard ourselves.

One way is by having personal cyber insurance, which can be an additional layer of protection for financial losses resulting from cyber scams. Think of it as a safety net that can cushion the financial impact that may result from the scam. Similar to how we invest in financial protection for our health, home or holiday travels, having cyber insurance prepares us in the event of the unexpected.

To address this growing concern, we have introduced FWD Cyber insurance, a newly launched cyber protection plan designed to safeguard you from the financial impact of cyber fraud. You will receive one-year complimentary coverage⁵ when you purchase or renew your FWD Home insurance.

This protection plan provides coverage for online shopping fraud, up to S$5,000 on a reimbursement basis. In addition, if you experience fraudulent electronic bank transfers, you will be reimbursed for your losses, capped at S$5,000. With FWD Cyber insurance, you can take comfort in knowing that you’re financially safeguarded from the risks of phishing and e-commerce scams.