Measures to Protect Youths from Falling Prey to Cryptocurrency Game Scams
Ministry of Home AffairsSpeakers
Summary
This question concerns the measures taken to protect youths from cryptocurrency game scams like Neko Inu, as raised by Dr Shahira Abdullah. Minister for Home Affairs K Shanmugam explained that the Police established a cryptocurrency taskforce in 2018 to enhance investigations and international cooperation, although recovering funds from overseas scammers remains difficult. He emphasized that public education is the primary defense, highlighted by initiatives like MoneySense's "Ask, Check and Confirm" campaign to increase awareness of unregulated platforms. Minister for Home Affairs K Shanmugam urged citizens to only deal with entities regulated by the Monetary Authority of Singapore and to maintain skepticism toward offers that seem too good to be true. The response focused on strengthening public discernment alongside operational efforts to monitor the evolving cryptocurrency landscape.
Transcript
91 Dr Shahira Abdullah asked the Minister for Home Affairs in view of the Neko Inu crypto gaming craze that has resulted in Singaporeans losing over $100,000 in cryptocurrency, what is being done to educate and protect youths from falling prey to cryptocurrency game scams.
Mr K Shanmugam: With increasing interest in cryptocurrency, cryptocurrency-related scams have become more common. These scams come in many forms. In addition to online games that the Member mentioned, cryptocurrency-related scams include fake trading platforms and fake investment schemes.
Given that the vast majority of such cryptocurrency scams are perpetrated by scammers based outside Singapore, there is a limit to how much law enforcement agencies in Singapore can do once the scam has taken place. Our ability to solve these cases will depend on the level of cooperation from overseas law enforcement agencies, as well as their ability to track down these scammers. Where money has been transferred overseas, recovery is also more difficult.
Nonetheless, to address these scams, we have stepped up investigation efforts. The Police established a cryptocurrency taskforce in 2018 to monitor the cryptocurrency landscape, develop and improve operational procedures in the investigation and seizing of cryptocurrencies, and establish working relationships with overseas law enforcement agencies, industry professionals, and academic experts. The taskforce works closely with MAS which regulates entities that deal in or facilitate the exchange of cryptocurrencies.
Given the difficulties in investigating and prosecuting such overseas-based cryptocurrency scams, the best defence is a discerning public. To that end, we have stepped up public education efforts to educate the public on cryptocurrency-related scams. Police have shared advisories and worked with Government agencies to increase public awareness. For example, in MoneySense’s recent campaign from April to June 2021, in addition to highlighting the risks of investing in cryptocurrencies, the campaign featured key messages about the risks of dealing with unregulated entities and reminded the public to always "Ask, Check and Confirm".
When transacting with cryptocurrencies, we urge the public to only deal with entities that are regulated by the MAS. Members of the public should also practise healthy skepticism to ask, check and confirm before making any transactions on cryptocurrency-related platforms, whether they be investment-related, or for online games. If the offer from an investment platform or online game appears too good to be true, it could be a scam.