SINGAPORE: Singapore’s financial security measures have intensified, but fraudsters are evolving their tactics to circumvent these protections. Instead of targeting traditional bank accounts, criminals are now coercing victims into converting their money into cryptocurrency before transferring it, making it harder for authorities to intervene.
During a parliamentary debate on the Ministry of Home Affairs’ (MHA) expenditure budget, Minister of State for Home Affairs Sun Xueling highlighted the growing threat of cryptocurrency-related fraud. She warned that criminals are not only deceiving victims into transferring funds but are also directly targeting assets stored in crypto wallets.
The scale of cryptocurrency-related fraud has surged dramatically. In 2024, losses linked to such scams accounted for nearly 25% of all fraud-related losses in Singapore, a sharp increase from less than 10% in 2023.
Ms Sun noted that while the Monetary Authority of Singapore (MAS) has licensed and imposed regulatory oversight on some digital payment token service providers, many online exchanges and wallet service providers remain unregulated. Many of these platforms operate overseas, placing them beyond Singapore’s jurisdiction. Furthermore, the anonymity of certain cryptocurrency transactions makes them an attractive tool for criminals seeking to evade legal scrutiny.
The MAS has repeatedly warned individual investors about the risks associated with cryptocurrency investments. However, Ms Sun pointed out that despite these warnings, many individuals continue to be drawn by the promise of quick profits. Some believe that conducting thorough research and understanding the risks can shield them from financial losses or scams.
However, even experienced cryptocurrency users have suffered significant losses, either due to sudden market crashes or sophisticated fraud schemes. The largest scam recorded in Singapore in 2024—a malware-based attack targeting cryptocurrency wallets—resulted in victims losing a staggering S$125 million.
Ms Sun emphasised that these scams are not limited to individuals unfamiliar with cryptocurrency. Criminal groups also target seasoned investors who may assume they are less vulnerable to fraud.
Given the high risks and difficulties in recovering stolen funds, authorities strongly advise the public to exercise extreme caution or avoid cryptocurrency transactions altogether. Once a scam occurs, recovering lost assets is nearly impossible, making prevention the best defence against these evolving threats.