E-commerce Scams Reported since Launch of E-Commerce Marketplace Transaction Safety Ratings
Ministry of Home AffairsSpeakers
Summary
This question concerns the reported number of e-commerce scams since the May 2022 launch of the Transaction Safety Ratings (TSR) and an evaluation of its effectiveness. Mr Gan Thiam Poh inquired about scam statistics and TSR impact, with Minister for Home Affairs K Shanmugam reporting 4,762 cases in 2022 and 9,783 in 2023. The Minister stated that platforms implementing TSR features saw significantly fewer scams, such as Shopee’s 65% reduction and negligible numbers on Amazon and Qoo10. He emphasized that the TSR encourages safety enhancements and user education, while platforms lacking these features continue to see spikes in scams. Finally, he highlighted the June 2024 E-Commerce Code of Practice under the Online Criminal Harms Act, which mandates upstream measures like identity verification for high-risk platforms.
Transcript
82 Mr Gan Thiam Poh asked the Minister for Home Affairs (a) whether the Ministry has data on the number of e-commerce scams reported for each month since the E-Commerce Marketplace Transaction Safety Ratings (TSR) was launched in May 2022; (b) if so, what is the number; and (c) what is the assessment on the effectiveness of TSR in tackling e-commerce scams since its implementation.
Mr K Shanmugam: E-commerce scams are among the most common types of scams seen in Singapore. There were 4,762 cases reported in 2022 and 9,783 cases reported in 2023. However, in terms of average amounts involved in each case, the losses in e-commerce scams are among the smallest.
E-commerce marketplaces which have implemented the recommended safety features under the E-Commerce Marketplace Transaction Safety Ratings (TSR), such as user verification and secure payment option, see significantly fewer scams. For example, following the launch of TSR, Shopee progressively implemented user verification against Government-issued identity documents for sellers in December 2022. Subsequently, the number of reported e-commerce scams on Shopee went down by 65% in 2023.
Amazon and Qoo10, which have implemented all the recommended safety features, have seen negligible numbers of e-commerce scams. In contrast, platforms that have yet to implement the Ministry of Home Affairs' (MHA's) recommended safety features have continued to see spikes in the number of scams on their platforms.
Overall, we assess that TSR has helped prevent even more e-commerce scams from succeeding. It incentivises e-commerce marketplaces to enhance their safety features. It also educates users on the availability of safety features on e-commerce marketplaces and what they should look out for when transacting online.
Apart from TSR, MHA has worked with industry partners to revise Technical Reference 76, the national standard for e-commerce transactions, to include additional anti-scam guidelines. And in June 2024, we published the E-Commerce Code of Practice under the Online Criminal Harms Act, which requires platforms that pose the highest risks of e-commerce scams to implement additional upstream measures, such as user verification against Government-issued identity documents.
Beyond e-commerce marketplaces, we have observed scammers making use of other platforms, such as Facebook and Telegram, to perpetrate e-commerce scams. We urge all online platforms to create a safer and more secure environment for their users.