PUBLISHED ONMarch 04, 2025 6:55 AMByBhavya RawatScammers have "pivoted their playbook" as bank accounts become more protected, said Minister of State for Home Affairs Sun Xueling on Tuesday (March 4).
Speaking during the Ministry of Home Affairs' (MHA) Committee of Supply debate, Sun explained that these scammers are asking victims to convert their money to cryptocurrencies prior to performing transfers, thereby evading banking safeguards.
Scammers have also targeted assets stored in victims' crypto wallets, she said.
Crypto-related scams accounted for nearly 25 per cent of all scam losses in 2024. This was up from less than 10 per cent in 2023, she added.
While cryptocurrency is largely unregulated, only a fixed number of digital payment token service providers have been licensed by the Monetary Authority of Singapore (MAS) with certain regulatory safeguards in place.
However, many online exchanges and wallet providers remain unregulated, and out of the reach of Singapore's law as they operate from overseas, Sun said, adding that the anonymity features of certain cryptocurrency transactions can be exploited by criminals to evade capture.
Noting that some people see crypto as "an opportunity to make a quick buck", Sun warned Singaporeans against doing so.
"They think so long as they do their own research, and understand the risks, they won't lose money or get scammed," she said, pointing out that "even crypto-savvy individuals have lost badly by trading in crypto when their values plummet, or fallen prey to scams."
The single largest scam that occurred in Singapore last year, which involved $125 million, targeted the victim's cryptocurrency wallet using malware.
"These sophisticated criminal syndicates are going after both crypto-novice and crypto savvy investors. They invest in elaborate fake crypto trading interfaces to scam you into thinking that you are profiting from your crypto investments," Sun explained.
"Some embed malware or phishing links to drain your crypto wallets. Meanwhile, we have seen meme coin prices soar rapidly before crashing in pump-and-dump schemes, leaving consumers with significant losses."
The risks of getting burnt is high, she said, adding that the chances of scam victims getting their money back are very low.
Responding to Members of Parliament Sitoh Yih Pin and Mariam Jaafar as well as Nominated Member of Parliament Keith Chua, who asked if messaging apps and social media platforms have been cooperative with MHA's guidelines, Sun said that these platforms have generally been responsive to the two Codes of Practice under the Online Criminal Harms Act (OCHA).
The Online Communication Code and E-Commerce Code require online platforms to implement measures to proactively prevent and disrupt scams.
However, Sun highlighted that online messaging platform Telegram, which has long prioritised the anonymity it provides to users, remains a concern.
This anonymity is exploited by scammers and other criminals. Specifically on scams, the number of reported scams on Telegram nearly doubled in 2024, she said.
Sun urged Telegram to take the online safety of its users seriously and adopt stronger user verification measures, adding that MHA is monitoring the situation closely and will explore further measures to address the matter, including taking legal action.
Also responding to questions posed during the debate, Second Minister for Home Affairs Josephine Teo spoke about the Home Team's plans to use artificial intelligence (AI) against AI-driven crime.
"Scammers are exploiting Gen AI to produce fake content at speed and scale, and to target victims. They can also use it to manufacture evidence to mislead or frustrate investigators," said Teo.
In July last year, the Cyber Security Agency of Singapore said that underground forums were found to be selling modified versions of ChatGPT that circumvent safety filters to generate scam content.
According to the agency's Singapore Cyber Landscape report for 2023, roughly 13 per cent of phishing scams analysed by CSA that year showed signs of being made using AI.
In her speech, Teo also said: "Last year, HTX (Home Team Science & Technology Agency) launched the Home Team AI Movement to accelerate the development and delivery of AI capabilities across the Home Team."
"By end-2025, HTX will have hired and trained a 300-person AI workforce," she added.
In response to a question by NMP Razwana Begum on how ex-drug abusers can be prepared for successful reintegration into society, Minister of State for Ministry of Home Affairs Muhammad Faishal Ibrahim said that Supervision 2.0 will be fully operationalised this year.
Former drug abusers under this programme will undergo community supervision sessions, during which the Central Narcotics Bureau (CNB) supervision officer can check in on their well-being, the progress of interventions and assess residual reintegration needs.
CNB can then refer supervisees to the appropriate agencies for support such as assistance with housing or employment.
The programme will be operationalised in phases, with the aim of "emplacing all supervisees on this regime by 2026," he said.
Faishal also spoke about new initiatives such as the Reintegration Hub, which was established in 2024 to consolidate and better deliver pre-release intervention programmes to inmates due for release.
MHA is also trialling a Family Engagement Model to strengthen inmates' relationships with their family, which could provide them with more pro-social support following release and prevent them from reoffending, he said.
Additionally, the Career Circles initiative has been implemented to enhance career facilitation for ex-offenders, so that they can be gainfully employed and lead purposeful, crime-free lives, added Faishal.
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