We can all be thankful that Singapore is low on crime. Crooks in Singapore are simply smarter, and they know what makes us tick. Here are the common scams in Singapore today, and why smart Singaporeans fall for them. According to the Singapore Police Force, internet love scams have almost doubled In an Internet love scam, a stranger forges an intimate relationship with you online.

They then offer promises of sex, or a visit, or ask for financial help due to personal problems. This leads to the scammer asking you to transmit money to them, often in the form of gift cards gift cards such as Alipay cards or iTunes cards are the preferred medium, as it is harder to trace where the money goes without a bank transaction.

Quite often, the victims do have a suspicion that they are being scammed. They willingly choose to suspend that instinct, however, on the hope that they may be wrong. The victims are too emotionally invested to quit. In the case of sham prostitution the scammer just offers sex , the victims expect clandestine transactions because such arrangements are illegal. If they want to try and cancel the deal, for example, the scammer can simply threaten to expose them.

This should be a thing of the past, given the layers of security involved in online shopping and peer reviews.

The problem is, a number of Singaporeans still shop on unverified or dubious websites. The other half of the problem involves auction sites, such as eBay or Carousell. The promise of anonymity and lack of legal consequences is too tempting for crooks. In some cases, victims click on an ad that promises free iPads, laptops, vacation tickets, etc. It just keeps dragging on, payment after payment, while nothing arrives.

For auction sites, it can be hard to distinguish between a true scam and a dispute. Sometimes, when items are not what they expect, it prompts the buyer to launch a police report against the seller. However, there are also outright scammers on auction sites. In May this year, a group of Singaporeans teamed up to take down rogue accounts on Carousell. For the people lured by fake ads, it is simple sunk cost fallacy.

Once they have paid a few hundred dollars for two or three transactions, it seems a waste to stop paying. So they allow losses to accumulate, before they finally give up.

This lulls the users into a false sense of security.

While they may be smart online shoppers, they may still get lazy eventually, and not want to take steps like physically meeting the seller to exchange cash. Algorithmic trading is a real thing. This is when computers run applications that track price movements, and buy and sell according to programmed parameters.

Large banks and funds use them all the time.

Needless to say, the workings behind such an algorithm are top secret. They are money making machines, which financial institutions may spend millions to develop or buy.

But you can get one for free off the internet! Just run it on your computer, and it will trade for you. This gives you the same incredible advantage that financial institutions fork out tons of money for!

The free algorithm does have a cost: To use an analogy, this is like allowing someone to play jackpot with your money. Whenever they win, they take a small cut of it. The algorithms are often nonsensical, and do nothing but make random frequent trades. Out of , at least six or seven might win by luck and make the scammer some money.

You, on the other hand, will probably find your account run to the ground. It sounds clever, and the victims can tell their friends they are engaged in algorithmic trading. In some cases, the victims may also be spurred on by a temporary lucky streak.

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Earlier in the year, we heard about investments in Aquilaria trees that went sour. Go back even further, and we can see gold buyback schemes got a lot of attention. Either way, it boils down to the same thing: Put it this way: The first batch of investors often do get paid.

Even smart people can be drawn in, when they receive word of mouth proof from a friend or relative.

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As for the original investors, many will double down. Facebook continues to be a breeding ground for unsavoury schemes that prey on unsuspecting Singaporeans.

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In the scheme, Facebook users would get a message from their Facebook friend informing them that they had won a prize. They would then be asked to go to certain Facebook pages to claim their prize. This, they were told, were for insurance fees. After doing so, their prizes would then be shipped over.

Always verify any messages you get on social networks before you take action. Also, if you ever have to remit money to an overseas party, know that you have no avenue of recovery once you have done so. PERSONAL LOANS CREDIT CARDS BLOG HELP Contact Us FAQs About Us Guide. Contact Us FAQs About Us Guide.

Financial News, Reviews and Advice. Protect your savings and watch out for these money scams in Singapore. First published on 20 October. Last updated on 5 December. Internet Love Scams According to the Singapore Police Force, internet love scams have almost doubled Why Do Singaporeans Fall For This? Online Shopping Scams This should be a thing of the past, given the layers of security involved in online shopping and peer reviews. And then pay for tax. Free Algorithm Trading Algorithmic trading is a real thing.

Facebook Friend Scam Facebook continues to be a breeding ground for unsavoury schemes that prey on unsuspecting Singaporeans.

They, of course, never materialised. Personal finance news Money saving tips Alerts on deals. How to Survive a Recession in Singapore Without Losing Money. Credit Card Personal Loan.

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