AI-Powered Scams Force Singapore Banks and E-commerce Platforms to Bolster Defenses

Singapore's financial institutions and online marketplaces are escalating their anti-fraud measures as scammers deploy increasingly sophisticated artificial intelligence tools to mimic legitimate transactions and evade detection. The year-end shopping surge and festive periods have created prime opportunities for fraudsters, with police data showing more than S$1.5 million lost to high-demand item scams alone in 2025, even as overall scam cases show a modest decline.

Background and Context

The digital fraud landscape has evolved from simple phishing schemes to complex operations leveraging artificial intelligence to generate convincing, personalized communications that closely resemble normal user interactions. According to Singapore Police Force mid-year statistics, the first half of 2025 saw 19,665 scam cases—26% fewer than the same period in 2024—but total financial losses remained substantial at approximately S$456.4 million. This paradox of fewer cases but persistent high losses reflects scammers' increasing focus on high-value targets and sophisticated tactics.

Key Figures and Entities

Carousell, Singapore's leading online marketplace, has emerged as a critical battleground against e-commerce fraud. Gijs Verheijke, the platform's director of trust and customer experience, revealed that scammers are using AI to craft messages that mirror authentic user behavior, making detection exceptionally challenging. The platform has responded with enhanced Singpass verification for high-risk categories and AI-driven monitoring systems that analyze device fingerprints, IP locations, and behavioral patterns to preemptively suspend suspicious accounts.

Major banks have similarly strengthened their defenses. OCBC Bank reported preventing S$10.5 million in potential losses through measures including money lock features, kill-switch functions, and the elimination of SMS one-time passwords for mobile wallet provisioning—a change that resulted in a 98% reduction in related scams. The bank's anti-fraud head, Beaver Chua, noted a distinct seasonality to scam activity, with increases of 10-20% during holiday periods and festive seasons. DBS and POSB have implemented similar safeguards while emphasizing consumer education about phishing attempts and fake seller schemes.

Legal and Financial Mechanisms

The financial mechanisms enabling these scams often involve exploiting legitimate platforms through social engineering and technical deception. In concert ticket scams, fraudsters use fake payment receipts and screenshots to convince buyers to make advance payments, while in trading card schemes, they collect deposits for pre-orders that never materialize. A newer variant uncovered in mid-2025 involves scammers impersonating sellers by using email addresses matching usernames, prompting platforms to modify default settings and implement additional verification prompts.

Countermeasures include escrow services that hold payments until delivery confirmation, real-time transaction monitoring, and enhanced authentication protocols. The Consumers Association of Singapore (CASE) advises consumers to use CaseTrust-accredited platforms and avoid transactions outside official channels, emphasizing that legitimate businesses rarely pressure customers to act immediately or make payments through unconventional methods.

International Implications and Policy Response

The AI-driven evolution of online fraud poses global challenges for regulators and industry stakeholders, as traditional detection methods become increasingly inadequate. Singapore's experience highlights the need for international cooperation in combating cross-border digital crime, particularly as scammers exploit jurisdictional differences and operational gaps. The situation underscores broader questions about platform liability, data sharing protocols between financial institutions and e-commerce companies, and the regulatory framework for emerging AI technologies in fraud prevention.

As major platforms like Amazon and Shopee enhance their fraud detection systems and collaborate with authorities to dismantle phishing operations, the focus increasingly shifts to consumer education and technological innovation. The effectiveness of measures like cooling-off periods, enhanced identity verification, and behavioral analytics will likely determine whether the decline in scam cases continues while losses remain stubbornly high.

Sources

This report draws on Singapore Police Force scam and cybercrime statistics, public statements from OCBC Bank and DBS Bank, interviews with Carousell executives, advisories from the Consumers Association of Singapore (CASE), and official communications from Amazon and Shopee. Police data covers scam cases and losses reported between January and October 2025.