Cryptocurrency-related scams cost Singaporeans S$81.6 million in the first half of 2025, representing nearly 18% of total scam losses, with Tether, Bitcoin, and Ethereum being the primary cryptocurrencies involved.

Cryptocurrency Scams Surge in Singapore

Singaporeans lost S$81.6 million to cryptocurrency-related scams in the first half of 2025, accounting for approximately 18% of the total S$456 million lost to scams. The Singapore Police Force (SPF) data highlights the persistent risk and evolving tactics employed by fraudsters targeting digital assets. While overall scam cases decreased by 12.6% year-on-year, cryptocurrency scams remain a significant concern.

Key Cryptocurrencies Involved

Tether (USDT), Bitcoin (BTC), and Ethereum (ETH) were the primary cryptocurrencies utilized in these scams. The SPF noted that the irreversible nature and limited traceability of cryptocurrency transactions make asset recovery challenging, unlike traditional banking transactions.

Anti-Scam Measures and Recoveries

The Anti-Scam Command recovered S$56.7 million, including S$17 million in cryptocurrencies, and prevented a further S$179 million in potential losses. These efforts underscore the authorities' commitment to combating cryptocurrency fraud and protecting investors.

Evolving Scam Tactics

Scammers employ various tactics, including directing victims to create new cryptocurrency wallets for purported investments and offering initial small profits to entice larger investments. Other methods include the use of malware disguised as trading assistants or wallet upgrades, deepfake videos of public figures endorsing cryptocurrencies, and phishing campaigns mimicking legitimate financial services providers.

Regulatory Landscape and Investor Protection

Singapore has been actively refining its regulatory framework for digital payment token (DPT) services. Under the Financial Services and Markets Act (FSMA), all Singapore-based crypto firms offering overseas services must be licensed. The Monetary Authority of Singapore (MAS) has implemented rules to protect retail investors, including customer asset segregation, daily balance reconciliation, and the encouragement of third-party custodians for safekeeping of digital assets. These measures aim to foster innovation while mitigating risks and safeguarding investor interests.

Global Context and Regulatory Fragmentation

The PwC Global Crypto Regulation Report 2025 highlights a bifurcated regulatory landscape, with jurisdictions like the EU, U.S., Singapore, and Switzerland establishing clear rules. Europe's MiCAR regulation defines digital assets and provides rules for licensing, disclosure, market integrity, and consumer protection. In contrast, jurisdictions such as India, Kenya, and Turkey have unclear frameworks, leading to legal ambiguity and increased risks of fraud.

Impact and Future Outlook

The prevalence of cryptocurrency scams in Singapore underscores the need for continued vigilance and proactive measures to protect investors. Enhanced regulatory oversight, increased user awareness, and international collaboration are crucial to addressing the evolving challenges posed by financial cybercrime in the digital asset space.