In 2024, Singapore consumers were defrauded out of S$1.93 million (US$1.43 million) through prepayment scams, a stark increase from the previous year’
In 2024, Singapore consumers were defrauded out of S$1.93 million (US$1.43 million) through prepayment scams, a stark increase from the previous year’s figures. The latest report from the Consumers Association of Singapore (Case), published by VN Express, reveals that this amount has more than quadrupled compared to 2023, with the renovation industry bearing the brunt of the financial losses.
Renovation services accounted for a significant portion of the defrauded sum, with a total of S$728,000 lost, which represents over a third of the overall prepayment fraud. Many homeowners found themselves in a difficult situation as contractors abandoned projects midway, leaving them scrambling to complete renovations.
The bridal industry also suffered heavily, with losses reaching around S$284,000, or 15% of the total amount lost, as couples faced the cancellation of wedding services and unmet expectations. The moving sector was another significant contributor, accounting for approximately S$134,000 in losses due to mishandling of goods and undelivered large items during relocations.
The number of consumer complaints in Singapore rose by 2% in 2024, with 14,236 cases recorded. The most common sectors of complaint included motorcars, electronics, beauty services, renovation, and entertainment. However, one of the most notable increases was in e-commerce, where complaints surged by 25%, reaching a record 4,641 cases—the highest since Case began tracking these issues in 2020.
In response to the growing concerns, Case has joined forces with Shopee and Lazada, the two largest e-commerce platforms in Singapore, to implement a new dispute resolution framework. However, Case President Melvin Yong stressed the need for additional measures to protect consumers, particularly online shoppers. He called for more robust laws and better regulations for sectors handling substantial prepayments, aiming to reduce fraudulent activities and ensure greater accountability.
As Singapore’s consumer landscape continues to evolve, heightened focus will be placed on improving safeguards, especially in sectors vulnerable to prepayment fraud. The push for stronger protections is expected to gain momentum as more consumers demand greater security against scams and unethical business practices.
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