Singapore’s Scam Epidemic: A Growing Debt Crisis

In Singapore, a city-state renowned for its financial stability and strict regulations, a silent epidemic is unfolding. Thousands of residents are falling prey to sophisticated scams, losing not just their savings but also amassing crippling debts in a desperate bid to recover their losses. In 2024 alone, scam victims in Singapore lost a staggering $1.1 billion, marking a record high. Among them are individuals like Ali (not his real name), whose pursuit of romance turned into a financial nightmare, leaving him with over $25,000 in debt. As the number of cases surges, non-profit organizations and financial dispute centers are stepping in, but the scale of the crisis raises urgent questions about prevention, support, and systemic vulnerabilities.

A Personal Tragedy Amid a National Crisis

Ali, a 40-year-old delivery driver, thought he had found a connection when a woman named “Jannah” reached out to him on social media just before Hari Raya in March 2025. Their daily exchanges, filled with shared photos of meals and promises of meeting in person, built a sense of trust. But trust turned to betrayal when “Jannah,” claiming to be a Malaysian working in Singapore, asked for financial help with a part-time job. Ali was instructed to make “purchases” for a luxury fashion brand by transferring money to various bank accounts, supposedly to boost the products’ popularity. After an initial small commission gave him false hope, he poured in his entire $6,000 savings.

When the platform demanded more transactions to release his earnings, Ali’s desperation grew. He borrowed $9,000 from a former colleague under false pretenses, took $11,000 in cash advances from banks, and secured nearly $6,000 from licensed moneylenders. Despite these efforts, his money vanished, leaving him with monthly repayments he can barely manage on his $2,500 income. “I have no idea how to manage the coming months” said Ali, reflecting on the mounting late charges and interest.

Ali’s story is far from unique. Across Singapore, victims of scams—ranging from investment fraud to romance and job scams—are not only losing their life savings but also taking on significant debt to chase illusory returns or cover their losses. The emotional toll is immense, with many grappling with shame, isolation, and financial ruin.

Escalating Numbers and Systemic Challenges

The scale of Singapore’s scam crisis is evident in the data. Credit Counselling Singapore (CCS), a non-profit organization traditionally focused on business and credit card debt, has seen a sharp rise in scam-related cases since it began tracking them in 2023. According to CCS general manager Tan Huey Min, the organization assisted 106 victims in 2024, and with 33 cases already recorded in the first quarter of 2025, the total could exceed 130 by year-end. “These victims usually fall for investment scams, where they are told to invest in schemes before they can withdraw their capital and profits” said Ms. Tan. She added that the cycle of loss often deepens when victims, seeing no returns, borrow more money to invest, trapping themselves further.

Similarly, the Financial Industry Disputes Resolution Centre (Fidrec), which mediates disputes between consumers and financial institutions, reported a dramatic increase in scam-related cases, from 325 in 2022 to 879 in 2024. About 3% of these cases annually involve victims who incur debt, either by borrowing during the scam or through loans fraudulently taken in their name by scammers. While mediation success rates have improved—rising from 27% of cases settled amicably in 2022 to 67% in 2024—many victims still face uphill battles, especially when adjudication dismisses claims due to voluntary authorization of loans or failure to safeguard banking credentials.

The financial and psychological impact of these scams is compounded by the sophistication of modern fraud. Scammers exploit digital platforms, social media, and personal vulnerabilities, often targeting individuals with promises of quick returns or emotional connection. In a society where financial prudence is a cultural cornerstone, the stigma of falling victim to a scam can deter people from seeking help, exacerbating their plight.

Support Systems Under Strain

For debt-laden scam victims, non-profit organizations like CCS and AMP Singapore offer a lifeline. CCS provides free weekly information sessions on debt management and individual consultations to help victims create repayment plans. Counsellors work with clients to cut expenses—such as switching from private-hire rides to public transport—and negotiate with creditors to pause repayment demands. In extreme cases, bankruptcy may be suggested as a last resort. “If you need to borrow to pay your debts, you need to seek help. Because borrowing will not solve the problem. It will only grow bigger” said Ms. Tan, emphasizing the importance of early intervention.

AMP Singapore’s Debt Advisory Centre (DAC) has also seen a surge in scam-related cases, with the proportion rising from 5% in 2023 to 15% in 2024. Beyond financial guidance, DAC offers psychological and emotional support, legal advice on filing police reports, and support groups where victims can connect with former debtors. According to case officer Muhd Alamin Ab Majid, these services aim to rebuild confidence and provide practical pathways out of debt.

Yet, even with support, recovery is often a grueling process. Take the case of Mr. V. J., an expatriate in his 40s who lost $650,000 to an investment scam in July 2024. Of this sum, $200,000 was borrowed from friends and $450,000 from banks. Selling his house in India barely made a dent in his obligations. “There were three months when I was skipping meals because I didn’t have money” said Mr. V. J., who declined to disclose his occupation or income. With CCS’s help, he extended his loan repayment period from two to five years and slashed his monthly spending to $1,000. Now, half his salary goes toward clearing his debt, of which he has repaid over 90%. “I could have said I’m bankrupt and just run away, but I took a loan. Whether I was cheated or not, I will pay” he said, reflecting a determination shared by many victims despite their hardship.

Broader Implications for Policy and Prevention

The rising tide of scam-related debt in Singapore points to deeper systemic issues. While organizations like CCS and Fidrec provide critical support, their resources are stretched thin as case numbers grow. Moreover, the nature of scams—often perpetrated by overseas syndicates using untraceable digital channels—poses significant challenges for law enforcement. Singapore’s police and financial authorities have ramped up public awareness campaigns, warning against unsolicited investment offers and the sharing of personal banking details. Yet, scammers continue to adapt, exploiting new technologies and psychological tactics to ensnare victims.

Economically, the $1.1 billion lost to scams in 2024 represents not just individual tragedy but a measurable drag on consumer confidence and financial stability. For a nation that prides itself on being a global financial hub, the proliferation of fraud raises questions about the adequacy of digital security measures and regulatory oversight. Some experts argue that banks and financial institutions should bear greater responsibility, such as implementing stricter verification processes for large transactions or loans taken under suspicious circumstances. Others call for enhanced international cooperation to dismantle cross-border scam networks, which often operate beyond Singapore’s jurisdiction.

On a societal level, the crisis underscores the need for education on digital literacy and financial decision-making. Many victims, like Ali, are not necessarily financially illiterate but are swayed by emotional manipulation or the promise of quick gains during times of personal or economic stress. Addressing this requires a multi-pronged approach, from school curricula that teach critical thinking about online interactions to community programs that destigmatize seeking help after falling victim to a scam.

Looking Ahead: A Call for Collective Action

As Singapore grapples with this escalating debt crisis fueled by scams, the stories of individuals like Ali and Mr. V. J. serve as stark reminders of the human cost. While non-profits and dispute resolution centers offer vital support, their efforts alone cannot stem the tide. The government, financial sector, and civil society must work together to strengthen preventive measures, enhance victim recovery mechanisms, and pursue scammers with unrelenting determination. Until then, thousands of Singaporeans remain at risk of losing not just their money but their livelihoods and peace of mind. How the city-state responds to this challenge will test its reputation as a bastion of security and trust in an increasingly digital world.