What is a bulk order scam, and how do fraudsters profit from it?: askST

A spate of bulk order scam cases has been reported in the past two weeks.

The first case that made headlines involved a hawker stall in Tiong Bahru Market that received an order for 150 packets of briyani.

The person who made the order did not collect it on Sept 9 as arranged, and initially the incident was thought to be a prank.

Since then, there have been at least six cases involving other local businesses, such as eateries and a florist.

It is now believed that a syndicate is behind the scams, with three people arrested over their suspected involvement.

The trio are believed to have been mules who provided their bank accounts and phone lines to the syndicate.

Q: What is a bulk order scam?

A: The recent cases of bulk order scams appear to be targeted at local businesses.

They are not pranks, but elaborate schemes to cheat the businesses of their money.

Scammers would call a business using a local number they obtained from a mule, and place a large order to be fulfilled within a short period.

The order would be large enough to require significant effort and resources to prepare, but not too large that the business would have to reject it outright.

The scammer would claim the payment would be made once the order is collected.

If the business operator asks for a down payment, the scammer would make excuses or false promises that it will be made closer to the collection time.

Nearing the deadline, the scammer would call or message the business again, requesting additional items or specific brands the targeted business does not carry, or quantities it is unable to fulfil on short notice.

When the business says it is unable to provide these additional items, the scammer would threaten to cancel the order.

This is done to instil fear that the business will lose money from the effort and resources already spent to prepare the order.

After putting the target in this vulnerable state, the scammer then entices the business operator with a supposed solution.

The scammer would claim he has the contact of a supplier who can provide the additional items, but that the business must make the arrangements.

In desperation, the business would contact the supposed supplier and make payments for the additional items.

But these items never arrive, and the bulk order is never collected.

Q: How does the syndicate profit from the scheme?

A: Scam syndicates prey on the fears and desperation of victims, making them believe that the only way out is to fork out money to avoid a loss on the order.

The supplier of the additional items is in on the scam and is from the same syndicate.

Worried that the order may be cancelled, the victim would be tricked into transferring significant sums as payment for the additional items.

In some cases, the payments would exceed the cost of the original bulk order.

The scammers would typically become uncontactable after receiving the money.

Getting the money back would prove difficult as the bank account is from a mule, and the funds would have dissipated quickly.

Q: Why do victims believe the scammers are genuine?

A: The syndicates have been able to obtain local phone lines and bank accounts through mules in Singapore, bypassing the safeguards against calls from foreign numbers.

They use stolen photos of Singaporeans as their profile photos on messaging platforms and speak with a local accent.

They also often pose as professionals associated with the vocation of selfless service, such as healthcare workers, soldiers or teachers.

This causes victims to lower their guard, as the scammers appear to be credible people with shared experiences of being Singaporean.

The scammers also create a false sense of urgency by setting time limits, pressuring victims to act quickly and leaving little time for careful thought.

Q: Is this a new scam?

A: No. Scams with a similar modus operandi have been around since 2022.

In December 2022, the police warned of fake restaurant reservation scams during the festive season.

Scammers would make reservations and ask businesses to purchase off-menu items, such as expensive wine or seafood, in bulk from fake suppliers.

At least five operators lost more than $70,000 in July that year to such a ruse.

In April 2024, scammers adapted the scheme to target retailers in the renovation industry, causing at least five of them to lose more than $25,000 in total.

The scammers would place bulk orders of curtains, blinds and fabrics, and subsequently request additional items that these retailers did not carry.

Members of the public are advised to check for signs of a scam by verifying a caller’s or sender’s identity directly with the organisation the person claims to be from.

If you have fallen for a scam, you should immediately make a police report and inform the relevant financial institutions. If in doubt, call the 24/7 ScamShield helpline on 1799.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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