Buyer beware: Shopee customers lost nearly $400k to scammers in 2024

At least $399,000 was lost to Shopee scams in 2024, the police said in an advisory on Jan 24.

More than 179 such cases were reported to the police amid a rise in e-commerce scams.

According to the police, victims would encounter livestreams or product listings on the Shopee app and place their orders.

However, the victims would then be asked to complete the transaction outside of the app.

"The seller would offer victims a discount to entice victims to complete the transaction on messaging platforms such as Telegram and WhatsApp," the police said.

"In some cases, victims were added to Telegram group chats with other scammers posing as buyers."

Scammers would then confirm the victims' receipt of products through the third-party app, leading them to believe that they're making a legitimate transaction.

After transferring the money via PayNow or bank transfers, victims would then be notified that their products were held at customs. To release their purchases, they would need to transfer more money. 

Victims would realise that they were scammed when they did not receive their purchased goods or if sellers became uncontactable or banned, the police stated.

According to Shopee's own scam advisory, scammers may also attempt to extract information from victims, seeking their one-time PIN, account password or ShopeePay PIN.

They may request for customers' personal data which may be used to verify a buyer's identity.

Some may also ask victims to click links to third-party pages or urgently ask for money transfers and payments.

Should members of the public believe themselves to be scam victims, they ought to reach out to Shopee Customer Service via internet call or live agent chats for assistance, the advisory states.

"We would like to remind members of the public to exercise caution when transacting on e-commerce platforms," the police warned as they reminded the public to make purchases within the Shopee app.

Additionally, the Shopee Guarantee safety feature withholds payments to sellers until buyers can confirm that they have received their products.

Members of the public are also encouraged to adopt crime prevention measures to safeguard themselves.

Firstly, the public should download the ScamShield app to block and filter SMSes, as well as set up security features for payment accounts.

Next, they should check for signs of scams with official sources or with another trusted individual.

Upon encountering a scam, it is important to tell authorities or friends and family about it and flag any suspicious sellers to Shopee.

"If you suspect that you have fallen victim to a scam, call your bank immediately to report and block any fraudulent transactions as well as make a police report," the police advised.

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khooyihang@asiaone.com