Singapore is grappling with a sharp increase in online fraud, which has become a serious social issue. In particular, a combination of romance scams, where victims are defrauded by individuals feigning romantic interest, and investment scams promising high returns is on the rise. This trend is leaving victims not only with the loss of their savings but also with enormous debts.

Victim Ali (pseudonym, 40), after developing feelings for a woman online, accepted her job offer to help with tasks. He quickly lost all his savings and incurred debts exceeding 25,000 Singapore dollars (approximately 25 million Korean won). He lamented, "She even said she wanted to taste my mother's cooking, which made me feel very close to her. After receiving a 10% commission from a single successful 'purchase,' I invested all my assets in more 'purchases.'" However, the platform then demanded more tasks to be completed before the commission could be withdrawn. Panicked, Ali resorted to desperate measures, falsely borrowing house repair funds from a colleague and taking out high-interest cash advances from banks and loan sharks, plunging him into an unmanageable debt spiral.

According to the Singapore Police Force, the total amount lost to scams in 2024 exceeded 1.1 billion Singapore dollars (approximately 1.1 trillion Korean won), marking a record high. Credit Counselling Singapore (CCS), a non-profit organization, has recorded over 200 cases related to scam victims since it began tracking such cases in 2023, and the number continues to rise steadily. CCS General Manager Tan Hui Min warned, "Especially in investment scams, a common tactic is to initially show profits to build trust before blocking withdrawals and inducing further investment." Considering the 33 cases reported in the first quarter of 2025 alone, the total number of cases this year is projected to exceed 130.

The Financial Industry Disputes Resolution Centre (Fidrec), which supports the resolution of disputes with financial institutions, also reported a sharp increase in scam-related dispute cases, from 325 in 2022 to 879 in 2024. Approximately 3% of these cases involved victims borrowing money during the scam or scammers taking out loans under the victims' names, leaving them in debt.

Scam victims burdened with debt can seek help from non-profit organizations such as CCS and AMP Singapore. AMP Singapore's Debt Advisory Centre (DAC) reported a significant increase in the proportion of scam-related debt counseling cases, from about 5% in 2023 to 15% in 2024. DAC counselor Muhd Alauddin Ab Majid explained, "We provide psychological and emotional support to victims and guide them through legal procedures such as filing police reports." In addition to debt management and counseling, DAC also runs self-help groups that facilitate meetings with individuals who have experienced debt in the past.

CCS also offers weekly free informational sessions on debt management and individual counseling sessions. General Manager Tan Hui Min stated, "Counselors calculate the amount debtors can afford to repay each month and suggest ways to reduce unnecessary expenses. They then propose debt repayment plans to creditors to temporarily suspend repayment demands." However, she also advised that if debt repayment is impossible, extreme options such as bankruptcy should be considered.

In fact, V.J. (anonymous), a 40-year-old foreign worker who fell victim to an investment scam in July 2024 and incurred a debt of 650,000 Singapore dollars (approximately 650 million Korean won), sold his house in India but still could not repay his debt. He confessed, "I couldn't eat properly for three months because I had no money." CCS helped him negotiate with the bank to extend his loan repayment period from two to five years and reduce his monthly expenses to around 1,000 Singapore dollars (approximately 1 million Korean won). He currently uses half of his salary to repay his debt and has already cleared over 90% of it. V.J. emphasized, "I could have gone bankrupt and run away, but I will repay the money I borrowed."

A Fidrec spokesperson said, "If consumers file a complaint directly with the financial institution and fail to reach an agreement, Fidrec can assist with mediation." During the mediation process, victims often request full or partial debt forgiveness or installment payments, and the rate of amicable resolution through mediation has significantly increased from 27% in 2022 to 67% in 2024. However, if all efforts fail, an adjudication process by an independent third party can be requested. The spokesperson added, "However, if the victim voluntarily approved the loan or failed to properly protect their bank account information, the claim is often rejected during the adjudication process."

General Manager Tan Hui Min emphasized, "Taking on more debt to repay existing debt is not a solution but rather an act that exacerbates the problem. If you must incur debt, you should definitely seek help from professionals." It appears that Singaporean society needs to raise awareness about the rapidly increasing online fraud and make multifaceted efforts, such as strengthening the victim support system.