E-commerce Marketplace Transaction Safety Ratings 2024

1. The Inter-Ministry Committee on Scams (IMCS) published the E-commerce Marketplace Transaction Safety Ratings (TSR) 2024 today. The ratings assigned to major e-commerce marketplaces are updated annually, based on the latest anti-scam features they have in place to secure e-commerce transactions.

Background

2. E-commerce scams remain one of the top scam types in Singapore. In 2023, there were 9,783 reported e-commerce scam cases, a doubling from 4,762 cases in 2022. These scams generally involve the sale of goods and services online, which are not delivered after payment has been made. Close to 50% of e-commerce scams reported in 2023 were perpetrated on Facebook, where the number of cases surged to 4,550 from 1,138 in 2022. A breakdown of e-commerce scam cases across platforms can be found at Annex A .

3. In May 2022, the IMCS launched the inaugural TSR to provide consumers with information on the anti-scam measures implemented by major e-commerce marketplaces. The TSR covers e-commerce marketplaces that facilitate online transactions from multiple sellers to multiple buyers, with a significant local reach or a significant number of e-commerce scams reported. The TSR microsite can be found at E-commerce Marketplace Transaction Safety Ratings.

4. Members of the public are encouraged to refer to the TSR, to find out more about the availability of safety features on e-commerce marketplaces, and what they should look out for when transacting online. Members of the public may also refer to the Marketplace-specific advisories on the TSR microsite, for information on the safety features that each of these e-commerce marketplaces have put in place.

Overall Ratings

5. The IMCS has reviewed the e-commerce scams situation and refreshed the TSR. The overall ratings for 2024 are shown in Table 1 .

6. The overall safety rating assigned to each marketplace indicates the extent to which they have implemented measures that are critical to guard against scams. The four categories the rating is based on are: (a) user authenticity (specifically verification of user identities against Government-issued documentation), (b) transaction safety (e.g. availability of secure payment solutions), (c) availability of loss remediation channels for consumers, as well as (d) the effectiveness of their anti-scam measures. The ratings range from one to four ticks, with four ticks being the highest rating. E-commerce marketplaces with all the critical anti-scam measures in place and consequently experience a low number of scams on their platforms will be awarded the full four-ticks. Consumers should exercise greater caution when transacting on marketplaces without the recommended measures in place.

7. For the 2024 refresh, Shopee’s rating has improved from three ticks to the full four ticks. Similar to other marketplaces which were awarded the full four ticks (i.e., Amazon, Lazada and Qoo10), Shopee has implemented all the safety features deemed to be critical by MHA. In particular, Shopee has fully implemented user verification against Government-issued documentation for all sellers. The number of reported e-commerce scams on their platform has reduced by 65%, from 311 cases in 2022 to 109 cases in 2023.

8. For more details on E-Commerce Marketplace Transaction Safety Ratings, see Annex B .

Key Safety Features

9. Based on the modus operandi of e-commerce scams, the following safety features are deemed critical safeguards:

(a) User authentication . Consumers should look out for seller accounts that have their identities verified against Government-issued documentation by the platforms. Scammers are more likely to use unverified accounts to list their products and services.

(b) Secure payment options . Consumers should make use of secure payment options, such as escrow payment, to make payment for online purchases. In the absence of secure payment options, scammers are more likely to succeed in directing buyers to make payments through other channels (e.g., PayNow / bank transfers).

10. These safety features have proven to be effective in combating scams. E-commerce marketplaces that have put in place these safety features have seen significant reduction in e-commerce scams. MHA strongly urges all e-commerce marketplaces to put in place these features, to protect their users from scams.

11. To enhance collaboration with e-commerce marketplaces, SPF has been working with these platforms to co-locate their staff with the Police at the Anti-Scam Command (ASCom). As of 30 January 2024 and 20 March 2024, Carousell and Shopee have started to physically co-locate their staff at the ASCom. We encourage more online platforms and e-commerce marketplaces to do so.

Role of Online Stakeholders in Combatting Scams

12. Everyone, including online platforms and e-commerce marketplaces, has a part to play in the fight against scams. Over the past three years, MHA and SPF have been engaging online platforms to put in place the necessary safeguards.

13. Ms Sun Xueling, Chairman of the IMCS and Minister of State, Ministry of Home Affairs & Ministry of Social and Family Development, said: “In the fight against scams, partners are essential. The Government cannot do this alone. On behalf of the IMCS, we would like to thank our partners from the e-commerce industry for working with us on the E-commerce Marketplace Transaction Safety Ratings (TSR) 2024. I urge all e-commerce marketplaces to implement the critical safety features, specifically user verification against Government-issued documentation and secure payment options, to protect their online users from e-commerce scams.”

14. The IMCS will continue to review the TSR annually, to take into account the latest safety features implemented.

Annexes

Annex A - E-commerce Scams by Platforms, 2023 (PDF, 42KB)

Annex B - Factsheet on the E-commerce Marketplace Transaction Safety Ratings (PDF, 77KB)