Trust, transparency and technology key in tackling fraudulent transactions

AS A hyper-connected nation with a strong penchant for shopping and convenience, it is not surprising online shopping is now a norm in Singapore, even after the pandemic. However, this development has also brought to the fore an ever-evolving and complex threat – fraud. The retail sector, in particular, is a hot target of fraudsters due to the large transaction volumes the industry processes.

At the 2023 Regional Anti-Scam Conference in June, the Ministry of Home Affairs and Ministry of Social and Family Development emphasised the critical importance of real-time monitoring and efficient preventive measures to combat fraud effectively. They also addressed the global nature of payment fraud and the tactics used by fraudsters to orchestrate increasingly sophisticated schemes.

Consumer trust: A precious commodity

Understanding the difficulties retailers are facing, we spoke with some of them as well as consumers. The findings revealed a crucial reality: In the past year alone, 51 per cent of retailers said they experienced increased payment fraud attempts. In turn, the rise of fraudulent activities has led to almost two-thirds of consumers saying that they find online shopping less attractive.