With the rapid growth of the digital economy, online investment scams have become increasingly frequent, featuring diverse forms and deceptive tactics. These scams seriously endanger public property and undermine trust in the financial system. DJK LLP, a well-known law firm in Singapore, recently analyzed a typical case of online investment fraud and provided legal insights and preventive recommendations based on existing laws.
Case Overview
In the second half of 2024, a retired Singaporean woman, Ms. Liu, encountered an alleged “high-yield cryptocurrency investment plan” via social media. Promotional materials claimed that with just a S$5,000 investment, she could earn at least 50% returns within three months. A so-called “investment advisor” guided her through the process. The platform looked professional and realistic, which convinced Ms. Liu.
Over time, she invested a total of S$30,000. However, when she attempted to withdraw funds, the platform delayed, froze her account, and even requested additional “processing fees.” After several failed attempts to contact the platform, she realized she had been scammed and reported the case to the police and sought legal counsel.
DJK LLP’s Legal Analysis
DJK LLP（https://www.djkllp.com/） highlighted the following features common in such scams:
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Fake platforms mimicking legitimate entities: Fraudsters set up professional websites, simulate licensed platforms, and even forge licenses, making it difficult to distinguish real from fake.
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High returns and advisor manipulation: Victims are lured by high returns and guided by “advisors” who build trust.
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Obstructed fund withdrawals: Once funds are deposited, victims are hindered from withdrawing, often through fake fees and delays.
These acts may constitute several criminal offenses under Singapore law, including:
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Cheating and dishonestly inducing delivery of property (Section 415, Penal Code): Any act of deception that causes a person to transfer property may be treated as fraud.
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Computer-related offenses (Section 8, Computer Misuse Act): If the fraud involves digital platforms, it may qualify as a cybercrime.
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Money laundering (CDSA – Corruption, Drug Trafficking and Other Serious Crimes Act): Transferring scam proceeds through third-party accounts may trigger money laundering charges.
Legal Actions and Victim Support
In this case, Ms. Liu provided evidence such as transfer records, chat logs, and screenshots to the police, who opened an investigation. DJK LLP assisted her in filing a stop-payment request with the bank and reported the platform’s activities to the Monetary Authority of Singapore (MAS).
DJK LLP recommends that scam victims take the following steps quickly:
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Preserve all evidence (transactions, messages, screenshots);
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File a police report and consult a lawyer;
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Apply for urgent bank intervention to trace and freeze funds;
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Report to MAS or ScamShield (Singapore Anti-Scam Centre).
Prevention and Public Education
DJK LLP emphasizes that the key to preventing scams is raising legal awareness. Important reminders include:
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Do not believe promises of guaranteed returns;
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Always verify if a platform is licensed by MAS;
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Avoid clicking on suspicious links from social media or SMS;
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When in doubt, consult a legal professional.
Governments should also enhance monitoring of illegal financial activities and promote international cooperation to fight cross-border scam syndicates.
Conclusion
The case shared by DJK LLP highlights the dangers and sophistication of online investment scams, as well as the importance of legal mechanisms in combating them. Public vigilance and legal support are vital to building a safer digital investment environment.
