The Singapore Police Force (SPF) has recently issued an advisory1 urging members of the public to remain vigilant against investment scams. In these scams, victims were invited to join chat groups that falsely claim to offer free investment education and opportunities.
Scammers would typically lure victims using fake social media advertisements offering free investment education or training. Interested individuals are then invited to join a WhatsApp chat group where scammers pose as investment mentors and provide seemingly credible investment advice, bonuses or success stories to build trust. In some cases, some of these advertisements may even impersonate legitimate financial institutions. Victims are subsequently encouraged to start investing by opening investment accounts on fraudulent investment websites or downloading fake investment applications, which are made to appear legitimate by being available through the Apple App Store or Google Play Store. Victims were instructed to transfer funds to designated bank accounts or hand over cash or gold to unknown individuals posing as representatives of the investment company. These transactions were falsely presented as necessary to facilitate or secure their investments. To create a false sense of legitimacy, scammers may initially provide victims with purported investment returns. Victims typically realize they have been scammed only when they are unable to withdraw their funds or profits, or when the scammers become uncontactable.
Please note that Tokio Marine Financial Advisers (Singapore) Private Limited (“TMFAS”) and/or Tokio Marine Life Insurance Singapore Pte. Ltd. (“TMLS”) will never post such social media advertisements claiming to offer free investment education or training. Members of the public are also strongly advised to never transfer or hand over money or other valuables to any unknown individuals whose identities you have not verified. Always be cautious when making investment decisions and adopt the following precautionary measures:
a. ADD – security features (e.g., activate the privacy function on your device to disallow unknown users from adding you into chat groups). For more information on WhatsApp’s security features, visit https://www.whatsapp.com/security.
b. CHECK – scam signs with official sources (e.g., ScamShield app or ScamShield website at www.scamshield.gov.sg). Verify the authenticity of the investment company by:
- Asking questions to understand the investment opportunities. If the company is unable to answer or avoid answering any questions, be wary;
- Checking on the company, its owners, directors, and management members to assess if the investment opportunities are genuine;
- Confirming the company’s and representatives’ credentials through the Financial Institutions Directory, Register of Representatives, and Investor Alert List on the Monetary Authority of Singapore (MAS)’s website (www.mas.gov.sg);
- Checking that the downloaded applications are legitimate and available on the official application stores; and
- Checking for user reviews and ratings of applications before downloading them, even if they are believed to be legitimate and are available on official application stores.
c. TELL – authorities, family, and friends if or when you encounter scams. Report any fraudulent transactions to your bank immediately.
For more information on scams, members of the public can visit www.scamshield.gov.sg or call the ScamShield Helpline at 1799.
