ScamShield activated: Singapore minister sounds alarm on crypto scam epidemic
Singapore’s Minister of State for Home Affairs and Social and Family Development, Sun Xueling, cautioned against investments in cryptocurrency. Her recent address to the Committee of Supply noted the potential for financial loss through crypto-related scams. With scam-related losses reaching an all-time high of SG$1.1 billion ($825.2 million) in 2024, the government is stepping up its efforts to protect citizens from fraudulent activities.
Singapore’s crypto scam epidemic
According to local media, scams in Singapore alone registered a record 70 percent jump in financial losses in 2024 compared to the year before. Crypto fraud contributed to 25 percent of scam-related losses, reflecting the expanded danger posed by digital asset schemes. Scammers have increasingly turned to digital wallets, advanced hacking methods, and pretences of investment opportunities to dupe victims.
In response to the growing fraud crisis, Singapore introduced the Protection from Scam Bills in January 2024. These laws allow authorities to temporarily restrict the banking transactions of individuals deemed vulnerable to scams. However, this intervention is considered a last resort, employed only when persuasion fails.
The government has identified Telegram as one of the key platforms for crypto scams. There were reports of scams on the messaging app almost doubling in 2024. The government is keeping a close eye on the situation and has indicated the potential for regulations to ensure compliance by social media platforms.
Minister Sun Xueling’s cautionary message
Minister Sun urged citizens to steer clear of cryptocurrencies due to the high likelihood of financial loss and the near impossibility of recovering stolen funds. According to her, the complexity and anonymity of blockchain transactions make it challenging to trace and retrieve lost assets.
Sun stated, “Our advice to the public is to avoid cryptocurrencies. The risk of financial loss is significant, and if you fall victim to a scam, recovering your funds is extremely unlikely. The chance of you getting a single dollar back is very low.”
Gone are the days when scams were easy to identify through poor grammar or foreign accents. Fraudsters now leverage artificial intelligence and vast online data to craft highly convincing scams. Sun Xueling highlighted that these deceptive tactics make detecting fraud even harder for victims.
Sun Xueling further added, “The days when you could easily spot a scam call or email based on the other party’s strong foreign accent or poor English are gone. Scammers are now using artificial intelligence and our online information to make them more credible and less easily detected.”
MP Tan Wu Meng’s aggressive approach
While Minister Sun emphasised caution, MP Tan Wu Meng was more aggressive, recommending that Singapore have stricter punishments for crypto swindlers, going so far as to recommend caning as a penalty. This recommendation has fuelled calls questioning whether Singapore is being too soft on financial crimes.
Singapore’s evolving crypto policy
Singapore has in the past gained fame for being crypto-friendly, with exchanges such a prominent crypto trading platform Binance published news of the Singaporean Minister’s announcement, highlighting Singapore’s reputation for being crypto-friendly. This, though, has lately seen a shakeup due to the sudden spate of fraudulent activities, where some lawmakers call for stricter measures.
Earlier in 2025, Singapore banned Polymarket, labelling it as an illegal gambling platform. This move aligns with the government’s broader efforts to curb high-risk crypto activities that could facilitate financial crime. The government has released resources like ScamShield, an anti-fraud information bundle to fight growing scams. People are urged to use these tools and call the 1799 anti-fraud hotline for support. While no immediate policy shifts have been made, Singaporean legislators are considering tighter regulatory regimes. These might involve mandatory compliance for crypto exchanges and severe punishments for scammers. The government seeks to strike a balance between encouraging innovation and ensuring public safety.
