Shopee customers lose $399,000 after making payments outside app to scammers
The police have issued a warning about a surge in e-commerce scams involving the sale of items such as electronics and gold on the Shopee app.
In 2024 alone, at least 179 cases were reported, with victims losing a total of $399,000.
In these scams, victims would come across livestreams or product listings on the Shopee app and place orders.
Scammers posing as sellers would then persuade victims to complete transactions outside the app, offering discounts as bait.
These transactions often moved to messaging platforms like Telegram and WhatsApp.
To create a false sense of legitimacy, scammers sometimes added victims to Telegram group chats filled with accomplices posing as satisfied buyers.
These fake buyers would confirm receipt of products, convincing victims to proceed with payments.
Victims were typically asked to transfer money via PayNow or bank transfers.
In some instances, they were informed that their purchases were withheld at customs and required additional payments to resolve the issue.
The scam would become evident when products were not delivered, sellers became uncontactable, or were banned by Shopee.
The police are urging the public to transact only within the Shopee app to leverage the Shopee Guarantee, a feature that holds payments until buyers confirm receipt of the items.
In a statement by Shopee, a spokesperson said the shopping platform said it takes e-commerce scams very seriously and remains fully committed to providing a safe and secure shopping experience for all users.
"We want to emphasize that such incidents typically occur when buyers are persuaded to complete transactions outside the Shopee app," the spokesperson said.
"We strongly advise users to only transact with trusted sellers such as Shopee Mall and Preferred Sellers.
"We also urge users to keep all transactions within the Shopee app, where they are protected by our safety measures, including Shopee Guarantee.
"This key feature holds payments in escrow until buyers confirm receipt of their products and satisfaction with their purchase, significantly reducing the risk of fraudulent transactions.
"For enhanced security, we have extended Shopee Guarantee’s coverage period from 7 to 15 days, offering users even greater protection and peace of mind.
"We remind everyone to remain vigilant and exercise caution when encountering deals that appear too good to be true.
"Should users come across suspicious listings or encounter sellers attempting to divert transactions outside of Shopee, we urge them to promptly report these activities through our official channels."
For more tips on avoiding scams, visit www.scamalert.sg or call the Anti-Scam Helpline at 1800-722-6688.
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