Carousell to verify users' Singpass in 'high-risk scenarios' from late Jun. 2024 to mitigate scams

E-commerce marketplace Carousell will deploy Singpass verification checks for "high-risk scenarios" from late June 2024 to mitigate scams.

"This means that should our Artificial Intelligence (AI) system detect behaviour similar to known scam patterns or policy violations, the user will receive a notification to verify their identity to continue using our platform," Carousell's chief of staff Su Lin Tan told Mothership in a Jun. 21 statement.

Tan added that the company does not plan to make such checks mandatory for all users to "balance user safety with user experience".

On Jun. 21, the Ministry of Home Affairs announced in a press release that service providers, such as Carousell, Facebook, Instagram, WhatsApp, Telegram, and WeChat, must put in place "appropriate systems, processes, or measures to proactively disrupt" scams and malicious cyber activities affecting Singapore users from Jun. 26, 2024.

The Competent Authority, sited within the Singapore Police Force, will be able to issue Code(s) of Practice (COP), which are part of the framework created under The Online Criminal Harms Act (OCHA).

For Carousell, which will be subject to COP for E-commerce Services, MHA will assess the effectiveness of its measures to verify the identity of risky sellers between Jul. 1 and Dec. 31, 2024.

Should the number of e-commerce scams reported on Carousell fail to drop "significantly", MHA will require the company to verify the identity of all sellers by Apr. 1, 2025.

Carousell to implement measures in 'tailored approach'

In her statement, Tan said the "trust and safety" of Carousell users is the company's "key priority".

"Carousell has continually been enhancing our safety measures with the latest technology to keep pace with the fast-changing global scam landscape," the statement read.

Characterising the OCHA and its COPs as "key steps" to regulate malicious cyber activities, Tan said Carousell's existing measures are "already largely in line with the Code of Practice for E-Commerce Services in varying measures".

"We have been in consultation with MHA over the past year on how to formalise or operationalise certain measures to better fit our unique position as a predominantly peer-to-per classified marketplace where most of our users are casual sellers and buyers," added Tan.

For example, Carousell has implemented Singapass verification checks in 2023 for high-risk categories, such as Property and Tickets & Vouchers.

Tan also cited Carousell's publication of a safety policy on its help centre as an example of its "ongoing efforts" to keep its users safe.

"We will be rolling out the enforcement of safety policy in phases across different sub-categories in the coming months," the statement read.

"There is a need to balance strict policies for trust and safety without compromising on providing a convenient selling and buying experience for everyone. Hence, we will continue to implement additional measures and processes in a tailored approach," added Tan.

Meta to roll out verification measures for Facebook ads & Marketplace

Social media giant Meta has three service providers that will be subject to COP for Online Communication Services: Facebook, Instagram, and WhatsApp.

They must implement the appropriate systems, processes, or measures to counter scams and malicious cyber activities by Dec. 31, 2024.

Facebook Marketplace, Advertisements, and Pages are also subject to COP for E-commerce Services, like Carousell.

In response to Mothership's queries, a Meta spokesperson said the company supports the Singapore government's efforts to address online scams.

Meta "will continue to work closely with the Singapore Police Force, including the Anti-Scam Command, and the National Crime Prevention Council to tackle the issues," the statement read.

In addition to raising awareness around frauds and scams, Meta will also be rolling out a few initiatives, including verification measures that it is testing for Facebook ads and Facebook Marketplace in Singapore, added the spokesperson.

Singapore to be Facebook's first market to verify 'risky users, advertisers'

In a statement to The Straits Times, Facebook's vice president of public policy for the Asia Pacific region Simon Milner said Singapore will be its "first market" to verify risky users and advertisers.

Should the measures be proven effective in Singapore, they will be rolled out in other markets.

However, Milner declined to comment on how Facebook will define a risky account, citing concerns that scammers would take advantage of such information to evade detection.

"We continue to work with different stakeholders to understand new techniques that scammers deploy, so we can get ahead of their attempts to circumvent our system," said the Meta spokesperson.

WeChat 'committed to complying' with OCHA

Chinese instant messaging, social media, and mobile payment app WeChat will also be subject to the COP for Online Communication Services.

In response to Mothership's queries, WeChat said it is "committed to complying" with OCHA and will continue to work with its stakeholders to combat cybercrime.

"We also encourage our users to stay vigilant and to report any instances of fraud or scams immediately," added WeChat.

Mothership has reached out to Telegram for comments.

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