10-4-2024 (SINGAPORE) Singapore’s Ministry of Home Affairs (MHA) has revealed that Facebook Marketplace received the lowest rating among six e-commerce platforms for its anti-scam measures aimed at ensuring the security of online transactions. This assessment was unveiled in a press release on Wednesday (Apr 10).
The platform, which accounted for nearly half of all e-commerce scams in 2023, was awarded a meagre one tick for 2024, similar to the previous two years.
In contrast, Carousell received a two-tick rating, while Amazon, Lazada, Qoo10, and Shopee secured the highest rating of four ticks.
These findings were published in the 2024 e-commerce marketplace Transaction Safety Ratings (TSR) by the Inter-Ministry Committee on Scams (IMCS), as stated by the MHA.
The ratings assigned to major e-commerce marketplaces are updated annually to provide consumers with information on the anti-scam measures implemented by these platforms.
Introduced in May 2022, the TSR serves to inform consumers about the extent to which e-commerce platforms have implemented measures to safeguard users against scams. The overall safety rating considers four categories: user authenticity, transaction safety, availability of loss remediation channels for consumers, and the effectiveness of anti-scam measures.
“E-commerce platforms with all the critical anti-scam measures in place and consequently experience a low number of scams on their platforms will be awarded the full four ticks,” the press release stated. “Consumers should exercise greater caution when transacting on marketplaces without the recommended measures in place.”
E-commerce scams remain a significant concern in Singapore, with 9,783 reported cases last year – double the number from 2022, according to the MHA. These scams typically involve the sale of goods and services online that are never delivered after payment has been made.
Alarmingly, close to 50% of e-commerce scams reported in 2023 were perpetrated on Facebook, where the number of cases surged to 4,550 from 1,138 in 2022.
In a parliamentary sitting in February, Minister of State for Home Affairs Sun Xueling criticized Facebook’s parent company Meta for its lack of cooperation with the Singapore government in combating scams. Ms. Sun stated that Meta “consistently pushed back” against MHA’s recommendations to implement safeguards against scams on the platform.
In response, a Meta spokesperson expressed dismay at Ms. Sun’s statements and claimed the company was in “close consultations” with MHA and was “reviewing their suggestions seriously.”
Facebook and Carousell are the only platforms in the TSR that have not implemented all the recommended safety features.
On the other hand, Shopee received four ticks in 2024, up from three ticks last year. The platform, which accounted for only 1.1% of e-commerce scams in 2023, has “implemented all the safety features deemed to be critical by MHA.”
“In particular, Shopee has fully implemented user verification against government-issued documentation for all sellers,” said MHA, similar to Amazon, Lazada, and Qoo10.
The number of reported e-commerce scams on Shopee has reduced by 65%, from 311 cases in 2022 to 109 cases in 2023.
User authentication, such as verifying accounts and secure payment options like escrow, are deemed critical safeguards on e-commerce platforms. These safety features have proven to be effective in combating scams, and platforms that implement them have seen a “significant reduction” in cases.
MHA strongly urges all e-commerce marketplaces to implement these features to protect their users from scams.
Additionally, the Singapore Police Force has been working with the platforms to co-locate their staff with the police at the Anti-Scam Command (ASCom). As of January 30 and March 20, Carousell and Shopee have started physically co-locating their staff at the ASCom.
Ms. Sun, who is also the Chairman of IMCS, thanked partners from the e-commerce industry for collaborating with IMCS on the TSR.
“In the fight against scams, partners are essential. The government cannot do this alone,” she said. “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.”
