Police warn of rise in bulk order scams after victims lose at least $831k

SINGAPORE - At least 60 victims have fallen prey to a scam targeting businesses in the renovation, food and beverage, retail and service industries, with at least $831,000 lost since April 12.

In a statement on June 26, the police warned of the re-emergence of fake bulk order scams, which usually begins with scammers posing as customers of renovation contractors, restaurants or other businesses.

These scammers call or text the businesses via WhatsApp under the pretext of making bulk orders or reservations, and would typically request for additional items, or an item from a brand that the businesses do not stock, or quantities that retailers are unable to fulfil on short notice.

The scammer would then recommend a fake supplier for the victims to buy the items from.

The police said in some cases, scammers would pretend to be Singapore teachers looking for contractors for painting or plumbing jobs, to buy items like bicycles or tyres, or to engage photography services.

Scammers have provided screenshots of fake payment documentation to prove that they had partially paid for bulk orders in advance, which convinced victims to make upfront payment for orders placed with the fake supplier, they added.

Victims realised that they had been scammed only when they did not receive any payment from the “customer”, or when the “supplier” did not deliver the goods, or when both “customer” and “supplier” become uncontactable.

The police advised businesses to adopt these precautionary measures to avoid falling for scams.

Firstly, businesses should independently verify the identity of parties that they correspond with. They should avoid making advance payments or deposits to new suppliers. They should arrange to meet the supplier and only pay for goods that have been delivered.

Also, they should check for signs of scams through official sources like the ScamShield WhatsApp bot or this website to establish the legitimacy of a supplier. They should also check for reviews of the supplier before committing to a purchase.