S'poreans share how they spot or miss investment scams so you won’t fall for them too

Investment scams are evolving, becoming more convincing and harder to detect.

With scammers using sophisticated tactics to gain trust, even the most cautious individuals can fall prey.

To understand how Singaporeans perceive these scams, we spoke to three individuals from different walks of life about their experiences, perceptions, and strategies for staying vigilant.

“Too good to be true”, polished look and hacked accounts

Play on your greed

Iz, an engineer, believes that investment scams often play on people’s greed.

“I think investment scammers tend to offer something too good to be true, like high returns with low or no risks. Limited offers, timed gifts or rebates are common tactics to rush you into committing your money,” he said.

While Iz is confident in spotting obvious red flags, he acknowledges that some scammers now have more knowledge and methods to trick their victims.

“But you can always check the company’s details against the Monetary Authority of Singapore (MAS)’s Investor Alert List to see if they are really registered or if they are a scam.”

Appear credible online

Melissa (not her real name), 29, noted how investment scammers make the effort to look more credible online.

One way to do so is by creating fake mobile apps and requesting victims to download them from outside official app stores.

Victims deceived into downloading these apps are shown growing earnings/returns on investments.

“I think the scams look very polished and can appear ‘legit’ on some social media platforms by showing fake examples of success stories,” she said.

Once when browsing Instagram, she came across an ad of an “investment mentor” who promised high returns through cryptocurrency.

Not knowing how to report this scammer’s profile to Instagram, Melissa blocked the scammer’s profile.

She shared that she has since learnt to deal with such profiles on social media platforms, by directly reporting them to platform administrators.

If you’re like Melissa and encounter something suspicious?

Next time, you can use the ScamShield app to check if a number, message or link is from a trusted source. The app will also check if it matches known scam patterns or has been reported by others in the community.

ScamShield can be downloaded via the Apple’s App Store or Google Play Store.

Cold calling approach not the only way

For 60-year-old John (not his real name), investment scams were something he thought only happened in random cold calls or suspicious online ads.

“If a friend suddenly messages me about an ‘investment opportunity,’ I’d probably believe them at first. But now I know that scammers can take over their accounts and send messages that look real.”

He added that he wouldn’t think twice if a friend recommended something and might trust them if their replies were convincing.

After knowing that scammers can hack WhatsApp accounts to impersonate real contacts to make their scams harder to detect, John now pays more attention to the way messages are phrased and whether his friends speak differently.

Not sure if your “friend” is really your friend in such circumstances?

Check directly with them through other contact methods by giving the number a call or asking them about it through their social media platforms.

Better be extra careful especially when they are asking for a loan or offering investment opportunities.

Common investment scam tactics

Scammers know how to manipulate emotions, making their schemes appear trustworthy.

Here are three common patterns or methods through which scammers manipulate their victims:

Staying vigilant

1. Self-initiated

   Scammers tend to prey on those who proactively search for investment opportunities online or those who come across a website or social media posts offering such opportunities.

2. Befriending

   Scammers may also build an online relationship by befriending victims via dating apps or social media, then recommend investment opportunities after trust has been built.Once the victim puts in money, the scammer disappears.

3. Adding victims to group chats

   This method is very common, especially in messaging apps such as Telegram and WhatsApp.After adding victims to such group chats, scammers may pretend to have made investments and share false documentation of their “earnings” or “returns” to lure unsuspecting victims to do the same.

Staying vigilant

Staying vigilant is the best way to avoid falling victim to scams.

It is likely a scam if an investment offer is from a:

• Friend or partner that you have never met in-person
• Group chat that you were added to by an unknown number
• Social media post by a company that is not regulated by the Monetary Authority of Singapore

Being a digital native and having confidence in spotting scams is not enough, as we may have our blind sides and scams are ever-evolving.

Remember to ACT (Add, Check, Tell) – take protective measures to shore up our defence against scams.

1. ADD the ScamShield appAdd the ScamShield App to protect yourself from scam calls and SMSes. You should also enhance privacy settings to your messaging apps to avoid being added into unknown chat groups and enable Two-Factor Authentication (2FA) and multifactor Authentication for online accounts and e-wallets.
2. CHECK for any scam signs

   Always check before you invest.Dealing with an unregulated company or agent means losing your protection under the law.Therefore, it is important to check if the entities are regulated and here are some resources on the MAS website that can be of use to you:(i) Financial Institutions Directory

   (ii) Register of Representatives

   (iii) Investor Alert ListWhen in doubt, call and check with the 24/7 ScamShield Helpline at 1799.

3. TELL authorities, family and friends about scamsLastly, call your bank and make a police report if you suspect you have been scammed.Report and block suspected scam accounts/chat groups. In addition, warn friends and families about this scam encounter.With scammers becoming more cunning, staying informed is your best defence.

   When in doubt, always double-check — because in the world of investments, if it sounds too good to be true, it probably is.

This branded content was brought to you by the Singapore Police Force.

Cover photo courtesy of Canva