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Singapore Police warns against Chinese social media WeChat Forex Frauds
08/03/2017
Singapore Police warns against Chinese social media WeChat Forex Frauds

Online Forex frauds are targeting the 679 million users of WeChat. In an urgent response, the Singapore Police warns against Chinese social media WeChat Forex Frauds. What approach do the WeChat fraudsters use to scam WeChat users? 

8 March, AtoZForexThe Singapore Police Force (SPF) has issued a warning to alarm all users of the Chinese social media app against Forex frauds. It is not the first time that Forex and binary options frauds have relied on social media platforms to lure investors. A recent example of this is the report of the Canadian umbrella regulator, Canadian Securities Administrators (CSA).

The representing regulator of thirteen Canadian provincial regulators, CSA formed a task force and started to contact social media platforms and online advertisers to get rid of binary option advertising in Canada.

Chinese social media WeChat Forex Frauds scammed over $70,000

In the case of the Chinese social media WeChat Forex Frauds, the Singapore Police Force has reported that over $70,000 already got lost due to the scams via the app.

Moreover, the Singapore Police Force noted that the frauds don’t rely solely on false Forex advertisement through WeChat. The SPF also warns online gamers, who have been defrauded through the Chinese social media app as well.

What approach do the WeChat scammers take?

According to the Singapore Police Force’s report, many victims received attractive Forex rates ads on WeChat. Thereafter, the victims were asked to wire their funds to local bank accounts and got promised to receive in return the exchanged currencies in their WeChat or Alipay accounts.

However, in reality the promised exchanged currencies were never received, after the victims transferred their money to the local accounts. Working through a swiftly manner, the scammers blocked all the WeChat accounts, leaving no trace behind and can’t be contacted through any method.

Singapore Police Force tips to avoid WeChat Forex scams

It is a concerning trend and the local authorities has been investigating the case. Adding to this scope of the frauds, also the Singapore Police warns against Chinese social media WeChat Forex Frauds. The SPF has issued a public notice with the following advice to all WeChat users:

  • Exercise caution, when you respond to online advertisements in WeChat. If the offer sounds too good to be true, it most probably is the case.
  • Bear in mind that the party you are dealing with online is a stranger. Avoid engaging in any transactions if you are required to communicate with the other party outside of the website.
  • Don’t disclose any personal information, such as your bank account details over the Internet.
  • Use the services of licensed money changers or request to operator to show a valid license. It is against the law for anyone to operate a money-changing business without a valid licence from the Monetary Authority of Singapore.
  • In case of doubt, always call the anti-scam helpline at 1800-722-6688 or visit scamalert.sg.

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