How to handle scams, as told by a lawyer

BY KEITH HSU AND MOHAMMAD RIZUAN, JOINT MANAGING PARTNERS OF EMERALD LAW

With the acceleration towards digitalization, we are increasingly exposing ourselves to risks that technology brings, and the word that is on everyone’s lips: Scams. According to a report released by the Singapore Police Force, scams saw a 65.1% year-on-year increase in 2020. Out of the top ten scams recorded in the past year, e-commerce scams, social media impersonation scams, and phishing scams were the most common.

Although some may think that the older generation is more susceptible to scams, many from the younger generation are becoming victims too. As our transition into the digital age continues, it is even more important to be vigilant and be prepared.

E-commerce scams

The way we shop today has changed profoundly and more of us now shop online. Because of the prevalence and convenience that e-commerce brings, it has become the new norm. However, have there ever been times when you bought an item from a seemingly innocuous website, but the order never arrived?

Here are three tips to avoid getting scammed:

• If the deal seems too good to be true, it probably is

• Do your due diligence

• Manage your risk

Firstly, online retailers sell their products so they can turn a profit. If a product you are buying is priced too cheaply, ask yourself:

What is their commercial motivation? This is not to say that all deals are bad, but where it stops making commercial sense, this should raise a red flag.

Secondly, it is always worthwhile to do some due diligence. In the legal world, lawyers help to do this when we advise clients on major transactions. In e-commerce, reading product and vendor reviews can help you in detecting scams.

Lastly, there is unfortunately no foolproof way to completely avoid being scammed. Some vendors may put up fake reviews and look legitimate. How then? The rule of thumb is to manage your risk. You do this by taking greater precaution on larger purchases by increasing the amount of due diligence you do. After all, you would probably be just slightly upset if that $10 gimmick you were buying was a scam, but devastated if that expensive watch you paid for never arrived. Hence, for large ticket items, it may sometimes still be better to buy them from physical retail outlets.

Social media impersonation scams

Social media has become a glue for many of us. We use it to keep ourselves updated with our friends’ lives, watch entertaining videos, and even catch up on daily news. Just a tap of the phone screen exposes you to a world of wonder.

But what if we told you it is not all rainbows and butterflies? Imagine receiving a message from your parents on one of these social networking platforms, asking you to share a one-time password (OTP) just sent to your phone number. As you trust your parents, you do as they say… only to realize later that someone else was impersonating them all along, and the OTP you gave allowed the fraudster to clean out your bank account. Scary, isn’t it?

Social media users need to be extra vigilant, even when receiving messages from people they know. To avoid falling prey, never send your username, password, or OTP via any messaging platform. Furthermore, a quick way to verify the identity of someone messaging you is to make a phone call.

Phishing scams

Phishing scams is like the flu: It has weathered the test of time and only gets more elusive and dangerous. Using seemingly authentic mobile numbers, website domains, or email addresses, scammers attempt to pose as official “government” or “bank” staff who contact their victims to retrieve NRIC numbers, Internet banking details, and Personal Identification Numbers (PINs). This information is then used to empty your bank account.

So, what are the steps we can take to protect ourselves from these scams? Well, don’t simply trust that the caller is who he claims to be. Verify it. In relation to receiving unsolicited calls, get the name of the caller and try and call back through a number listed on an official website to ensure you are talking to an actual staff from the organization.

Prevention is better than cure

Truth be told, if your bank account funds have already been taken out of Singapore, getting your money back is an uphill battle. The authorities and lawyers may be able to help trace the monies — but this can be difficult if the money has been dissipated or has already been laundered through money mules. Further, while victims can consider suing these money mules or actual perpetrators, they may ultimately not be able to pay.

In summary, stay vigilant, don’t be complacent, and remember that prevention is always better than cure.