SINGAPORE — Online retail platform Shopee rose to the top of the official rankings for its security measures to tackle e-commerce scams for the first time, while Carousell and Facebook Marketplace remain at the lowest tier in the ratings, the Ministry of Home Affairs (MHA) said on Wednesday (April 10).
Publishing the findings of this year’s E-commerce Marketplace Transaction Safety Ratings by the Inter-Ministry Committee on Scams, MHA said Shopee had implemented all important safety features in the past year and as such joins three other platforms — Amazon, Lazada and Qoo10 — at the top rung of the ratings.
On the other hand, Carousell and Facebook Marketplace have remained at the bottom two tiers since the ratings were first launched in May 2022.
The latest update to the safety ratings come after Meta, which owns Facebook, was singled out by Minister of State for Home Affairs Sun Xueling during MHA’s budget debate in Parliament on Feb 29 for refusing to cooperate and for consistently pushing back against the ministry’s recommendations to combat scams.
The ratings, which are refreshed annually, seek to provide consumers with information on the anti-scam measures implemented by e-commerce platforms that facilitate online transactions from multiple sellers to multiple buyers, have a significant local reach or have experienced a significant number of e-commerce scams.
The overall safety rating assigned to each platform indicates the extent of the implemented measures critical to guard against scams.
They are based on: User authenticity, transaction safety, availability of loss remediation channels for consumers, and the effectiveness of their anti-scam measures.
The ratings range from one to four ticks, with four ticks being the highest rating, and awarded to platforms that fulfil all critical anti-scam features, resulting in low number of reported scams.
SHOPEE SAW SCAMS REDUCED BY 65%
In the latest review, MHA said Shopee’s rating improved from three to four ticks after it fully implemented user verification against Government-issued documentation for all sellers.
“The number of reported e-commerce scams on their platform has reduced by 65 per cent, from 311 cases in 2022 to 109 cases in 2023,” said the ministry.
Other platforms that were awarded the four ticks rating are Amazon, Lazada and Qoo10, all of which have been in the top tier since the rating was launched two years ago.
Carousell and Facebook Marketplace remain in the bottom two tiers of the ratings as per the previous year, obtaining two ticks and one tick respectively.
MHA said that based on the modus operandi used by e-commerce scammers, user authentication and secure payment options are considered as critical safeguards”.
MHA said: “Consumers should look out for seller accounts that have their identities verified against government-issued documentation by the platforms. Scammers are more likely to use unverified accounts to list their products and services.
“These safety features have proven to be effective in combating scams. E-commerce marketplaces that have put in place these safety features have seen significant reduction in e-commerce scams.
“MHA strongly urges all e-commerce marketplaces to put in place these features, to protect their users from scams.”
E-COMMERCE SCAM CASES DOUBLED IN 2023; MAJORITY COMMITTED ON FACEBOOK
E-commerce scams remain one of the top scam types in Singapore, said MHA, adding that they usually involve the sale of goods and services online which are ultimately not delivered after payment has been made.
In 2023, there were 9,783 reported e-commerce scam cases, a doubling from 4,762 cases in 2022, as reported in the police annual scams and cybercrime brief on Feb 18 this year.
Almost half of the reported scams in 2023 were perpetrated on Facebook, where the number of cases surged to 4,550 from 1,138 in the previous year.
To enhance collaboration, MHA said that the police have been working with e-commerce platforms to co-locate their staff with its Anti-Scam Command unit.
“As of Jan 30, 2024 and March 20, 2024, Carousell and Shopee have started to physically co-locate their staff at the Anti-Scam Command. We encourage more online platforms and e-commerce marketplaces to do so,” said MHA.
Ms Sun, who is also Minister of State at the Ministry of Social and Family Development, said: “In the fight against scams, partners are essential. The Government cannot do this alone.
“I urge all e-commerce marketplaces to implement the critical safety features, specifically user verification against government-issued documentation and secure payment options, to protect their online users from e-commerce scams,” said Ms Sun, who is also the inter-ministry committee’s chair.
