Singapore’s Scam Losses Surge 70% as AI Fraud Grows: Will Caning Deter the Scammers?

Singapore’s Rising Scam Losses Spark Talk Of Corporal Punishment

Scams have become a serious financial threat for many Singaporeans, with total losses soaring to more than S$1.1 billion last year, a jump of 70% according to law enforcement estimates.

Despite a slight dip in average loss per victim last year, reports of scams rose by 10%, showing criminals remain persistent.

Some experts argue tougher penalties are needed, including caning, as a deterrent against offenders.

Loretta Yuen, chair of the fraud committee at the Association of Banks in Singapore, said during an interview with Financial Times (FT),

“We believe in caning as a strong deterrent. It’s a deterrent, but there is also a sense of revenge to it.”

Singaporeans are among the world’s most targeted victims, losing more money per person to scams than almost any other country.

In 2023, the average loss was US$4,031 per victim.

The Global Anti-Scam Alliance estimates that over two-thirds of victims do not report their losses, so the true scale may be even greater.

Why Are Singaporeans So Vulnerable To Scams

Despite high levels of digital literacy and wealth, Singaporeans appear unusually exposed.

An asset recovery expert told the Financial Times bluntly,

“They are rich and naive.”

The country’s digitally savvy population may be more trusting and willing to comply with scammers’ requests, making them easier targets.

Scams have overtaken digital payment fraud as the main type of financial fraud in Singapore, rising 56% in reported cases last year.

Losses from scams increased by 121%, according to PYMNTS Intelligence research.

The largest share of scams involve tricking victims into authorising transactions, often by building false trust or impersonating known contacts.

How AI Is Changing The Scam Landscape

Generative AI is adding a new dimension to fraud.

Scammers now use tools like voice cloning and deepfake videos to imitate executives and pressure employees into transferring funds.

PYMNTS warns,

“Even low-level scammers can produce high-quality forgeries, blurring the lines between genuine and fake communications.”

Companies are responding with AI-powered fraud detection systems that learn to spot unusual transactions in real time.

These evolving defences aim to stay one step ahead of the scammers’ tactics.

Fake Friend Scams Hit Older Adults Hardest

Among the scam types gaining attention is the “fake friend” scam, which has seen a resurgence.

Whatsapp conversations with “fake friend” scammer (Source: Singapore Police Force)

Since April, police have reported 187 cases with losses exceeding S$653,000.

Victims receive messages or calls from numbers pretending to belong to friends, often asking for urgent financial help after gaining the victim’s trust.

Police advise caution when approached by unfamiliar numbers requesting urgent loans or banking help.

Verifying identities before making transfers is crucial, they stress.

Although cases of "fake friend" scams in Singapore dropped by 39.1% in 2024 to 4,179, down from 6,859 cases in 2023, the financial losses remained substantial at S$13.6 million.

According to the police’s Annual Scams and Cybercrime Brief, "fake friend" scams were identified as one of the top five scam types in Singapore.

Source: Singapore Police Force

Most victims tend to be aged between 50 and 64, a group particularly targeted by this scam type.

Singapore faces a continuing battle to protect its citizens from increasingly sophisticated scams.

Authorities’ consideration of corporal punishment signals the seriousness with which the issue is being tackled, even as fraud methods evolve in the digital age.

Is Corporal Punishment the Necessary Price for Deterrence?

As scams grow in complexity and scale, Singapore’s tough stance raises a difficult question: can harsher penalties like caning effectively stop fraudsters, or do they simply reflect frustration with an evolving crime that outpaces traditional law enforcement?

Balancing justice, deterrence, and human rights will challenge policymakers as they confront a digital threat that demands new strategies—both legal and technological.

The debate over corporal punishment may well be a sign that old tools are struggling to keep pace with new dangers.