SINGAPORE: A recent spike in bulk order scams targeting the renovation, food and beverage, retail and service sectors has ensnared hundreds of victims who lost millions of dollars in total.
According to the police on Tuesday (Aug 27), 427 cases have been reported since April, with total losses amounting to at least S$6.8 million.
The numbers are a huge jump from an earlier police advisory issued on June 26, which counted 60 victims and total losses of $831,000 since April 12.
The police on Aug 27 said the scheme typically begins with scammers posing as teachers from local schools.
The conmen would usually call or text restaurants, retailers and service-related businesses on WhatsApp under the guise of placing bulk orders or making reservations.
They would ask for additional items, or an item from a brand that the businesses do not stock, or quantities that the retailers are unable to fulfil on short notice.
The scammers would then recommend a fake supplier for the victims to buy the items from.
Some might provide screenshots of fake payment documentation to prove they had partially paid for bulk orders in advance, which would convince their victims to make upfront payment for orders placed with the fake supplier, the police added.
Victims would discover the ruse only when they do not receive any payment from the “customer”, or when the bogus supplier does not deliver the goods, or when both “customer” and “supplier” become uncontactable.
The police advised businesses to adopt the following precautionary measures to avoid falling for scams.
First, businesses should independently verify the identity of parties whom they correspond with.
They should avoid making advance payments or deposits to new suppliers.
They should also arrange to meet the supplier and only pay for goods that have been delivered.
Also, they should check for signs of scams through official sources like the ScamShield WhatsApp bot and this website.
They should also check for reviews of suppliers to establish their legitimacy before committing to a purchase. - The Straits Times/ANN
