According to a recent report by The Straits Times, in the past three months, a total sum of $78,000 was lost to crypto scammers in Singapore.
The scammers used a number of strategies to attract investors including spreading false information about fake online investment plans. These scams are specially designed to appeal the Singaporean residents by using well known local personalities to endorse the scams without their permission or knowledge.
According to the report, an unnamed platform used to advertise numerous paid online advertisements in the form of articles. These articles often feature local celebrities endorsing the lucrative investment plan. They portray Bitcoin as an incredibly secure and risk-free investment option which guarantee a massive return on investment. Such kinds of scams have also been tried in other nations.
Between September and November, Singaporean authorities have been made aware of several cases related to crypto investment schemes. According to the Singaporean police, the scammers used false information to promote Bitcoin (BTC) investment between September and November. These Bitcoin investment scams advertised online and were designed to target the residents of Singapore.
Singaporean authorities said that the schemes were operated from outside the country and these were unregulated by the Monetary Authorities of Singapore (MAS). The exposed investors are at a greater risk as these schemes are operated from outside of the legal jurisdiction of the regulators so it will be difficult to initiate the legal recourse. The authorities encouraged the investors to contact Singapore police who are exposed to similar scams. The exposed investors can contact at a police hotline at 1800-255-0000 or www.police.gov.sg/iwitness.
Singapore is one of the friendliest jurisdiction of Asia as far as cryptocurrency and blockchain technology is concerned. The government of Singapore has taken numerous moves toward the regulation of digital assets, initial coin offering (ICO) oversight, and adoption of blockchain technology. Despite all these steps taken by the government, the Monetary Authorities of Singapore does not have a comprehensive regulatory framework for cryptocurrencies which can safeguard the crypto investment.
The Singapore police said that investing money in crypto investment schemes which are run from outside of the country put the investors at an additional layer of risk as it becomes increasingly difficult to ascertain the identity and authenticity of the individuals behind such schemes.