Cases of scam victims who fall into debt on the rise

Credit counselling agencies see more victims incurring debt to address losses in savings

- Christine Tan

When a woman whom Ali (not his real name) liked asked him to help with her part-time job, he thought he had a chance at romance. Instead, his savings were wiped out, and he is more than $25,000 in debt.

Scam victims in Singapore lost a record $1.1 billion in 2024.

Some victims, like Ali, do not just lose their savings, but incur mountains of debt as they try to address these losses.

Non-profit organisation Credit Counselling Singapore (CCS), which typically helps people with business and credit card debt, has seen more than 200 scam victims since they started recording such cases in 2023.

CCS general manager Tan Huey Min said the number of cases is rising.

With 33 such victims in the first quarter of 2025 alone, there could be more than 130 cases in 2025, up from 106 in 2024, she said.

Ms Tan said these victims usually fall for investment scams, where they are told to invest in schemes before they can withdraw their capital and profits.

She added: "When they see their money going in and not coming out, the victim will find more money to pump in, and that's how they get into trouble."

The Financial Industry Disputes Resolution Centre (Fidrec), which helps consumers resolve disputes with financial institutions, saw a rise in scam-related disputes from 325 cases in 2022 to 879 in 2024.

About 3 per cent of such cases annually involve victims who incur debt with financial institutions, either by borrowing money during the scam, or by scammers taking loans in their name without their knowledge.

DEBT TRAP

Ali, 40, had accepted a Facebook friend request from a woman named "Jannah" on March 30, the day before Hari Raya.

The delivery driver, who is single, texted her daily.