28 Apr 2025
SOURCE: CPF Board
An attractive investment opportunity might seem too good to pass up, but distinguishing between a genuine deal and a potential scam can be challenging, especially as scam tactics become increasingly sophisticated. Recent data by the Singapore Police Force highlights a growing trend of investment scams, with 470 cases amounting to $32.6 million in losses since January 2025.
Here’s what you need to know to stay protected against investment scams in Singapore.
How investment scammers operate
Screenshot of scam advertisements (from the Singapore Police Force)
Social media platforms such as Facebook, Instagram, WhatsApp, and Telegram are popular hunting grounds for scammers.
Scammers first start to build rapport and trust with their victims by using fake endorsements from celebrities, political figures, and fabricated success stories to create an illusion of legitimate investment opportunities.
After doing so, they would introduce “investment opportunities” and invite victims to invest money via fake trading platforms.
Of late, cryptocurrencies have been favoured by scammers and they would deceive their victims into opening accounts at crypto-exchanges and transferring their hard-earned cash to purchase cryptocurrencies. Scammers then get victims to transfer their cryptocurrencies to the fraudulent cryptocurrency trading platforms or scammers’ wallets.
In some cases, victims may receive small profits from the scammer to fool them into believing that the investments were legitimate, before being lured to invest larger sums.
Many victims only realised that they have been scammed once they are unable to withdraw their “profits” from the investment platform or once the scammers become uncontactable.
This example regarding cryptocurrencies represents just one type of investment scam, and it's worth noting that scammers are constantly evolving their modus operandi to ensnare more victims. Refer to the next section for useful steps you can take to protect yourself from investment scams.
Some prevention strategies against investment scams
Do your research before parting with your hard-earned money
If it's too good to be true, it usually is. Be wary of investments with unusually high returns with little or no risk, as these are classic warning signs of scams.
Take the time to understand the investment product, including its risks, fees and how returns are generated before committing any funds. You can also check if the investment company is licensed by relevant authorities such as the Monetary Authority of Singapore (MAS).
Check with the authorities if you are unsure
If you are unsure if it’s a scam and would like to seek assistance and support, call the 24/7 ScamShield Helpline at 1799 to verify. You can also use the helpline to get directed to your bank if you suspect you have been scammed and to get advice on how to protect your bank savings to limit further losses.
Consult trusted financial advisers
A financial adviser can help evaluate whether an investment opportunity aligns with your financial goals and risk tolerance. Remember, legitimate financial advisers will never pressure you to make immediate investment decisions and will always have your best interests in mind.
Real-life case studies of CPF members who were victims of investment scams
1. Online stock trading investments
A CPF member aged 75 made several large CPF withdrawals between October to November 2024. As part of routine checks, CPF officers contacted the member to perform further verification, and the member stated that he intended to give the funds to his son for investment. Despite repeated probing, he refused to provide specific details about the type of investments.
The situation took a serious turn when the Police informed CPF on 22 November 2024 that the member had fallen victim to an investment scam starting from mid-August 2024.
The scammer had introduced the member to "online stock trading" and systematically encouraged him to fund the purported investment with promises of higher profits. Under the scammer's guidance, the member transferred about $180,000 to various bank accounts, with $50,000 of those funds coming directly from his CPF savings.
2. Investment in “online business account”
A CPF member aged 55 visited Jurong’s CPF Service Centre on 27 August 2024 to withdraw his CPF savings.
A CPF staff who assisted him immediately alerted his supervisors to the substantial withdrawal amount. Upon investigation, it was discovered that the member performed five additional CPF withdrawal transactions in August 2024 totalling $108,000.
After some probing, the member explained that he needed to top up an "online business account" to retrieve a previously "invested" amount, based on advice from an unknown individual that he met on Facebook.
This individual had recruited the CPF member as a “middleman” to advertise and sell products, and promised him a commission for every successful sale. However, the member was made to “purchase” the items first.
Suspecting a potential scam, CPF staff suggested that the member file a police report. The member remained persistent, expressing urgent need to top up the account by month's end to prevent his money from being forfeited. After some convincing by the CPF staff, the member halted further withdrawals and eventually filed a police report. Thanks to the CPF staff's prompt intervention, further losses were prevented, though by then about $66,000 had been swindled from the member and could not be recovered.
Take active steps to prevent investment scams and protect your retirement savings
Your retirement savings are a result of your hard work over the years. It's important to safeguard them to ensure that they last throughout your golden years. Stay wary of investment scams and remain alert to the common tactics scammers may use to make you part with your hard-earned money.
If you're unsure about potential investments, call the 24/7 ScamShield helpline at 1799 for immediate assistance and support.
The information provided in this article is accurate as of the date of publication.
