Scam Epidemic Sweeping across Southeast Asia

Milieu Insight, a leading Southeast Asian consumer research and data analytics firm, conducted a nationally representative survey among 2,000 respondents regional survey across Singapore, Thailand, Vietnam, Malaysia, and Indonesia in March this year to shed light on the prevalence of scams across the region.

Across the region, more than half of those who had been scammed (54%) lost money from the incidents. Buying/selling scams were the highest at 37%, likely due to the rise of online shopping, according to respondents who indicated how they were scammed. Investment scams accounted for 31% of the reported incidents, ranking as the second most prevalent type of scam in the region. In Thailand, prevalent scams included advance fee scams (34%), where individuals were promised money, services, or products in return for a small payment, as well as dating/romance scams (28%). Meanwhile, in Malaysia, frequent incidents involved phishing spams (35%), where individuals pretended to be trustworthy people or companies.

In Thailand and Vietnam, half of the victims fell prey to scams through social media channels, while in Vietnam, mobile app scams were also prevalent, accounting for 45% of reported scam incidents. Additionally, in Malaysia, 1 in 4 victims were deceived through email scams.

Vietnam and Malaysia emerged as leaders in public education to help individuals gain more knowledge about how to protect themselves against scams and fraud. Almost 5 in 10 respondents (47%) in both countries have received some kind of training or education. In contrast, Singapore (36%), Thailand (32%), and Indonesia (24%) lag behind with overall training to prevent fraud.   

Scam education and outreach channels varied across the region. When respondents were asked about the sources of information alerting them about scams, 50% of respondents across the region mentioned Facebook. However, in Singapore, only 33% received information from Facebook. Instead, Singapore respondents were more likely to rely on traditional platforms such as Television (47%) and newspapers (44%), or information shared through family or acquaintances (46%) 

Despite the perceived vigilance of governments in reducing scam incidence rates through public education, the prevalence of individuals who have fallen prey to scammers remains high in Vietnam (61%) and Malaysia (48%), according to the survey. The connection between perceived low scam education and higher scam incidents can be attributed to Indonesia (57%) and Thailand (46%). However, Singapore stands out with a low scam incidence rate (29%), which is likely a result of its "Whole-of-Government Effort Against Scams." Among those in Singapore who reported losing money in a scam, about 1 in 2 (50%) lost more than $1,000 SGD. 

Alarming revelations emerge when comparing scam reporting rates across the region. Indonesia (83%), Thailand (73%), and Vietnam (68%) were the top three countries where scams were experienced but not reported. This suggests that many victims may have normalized the impact of scams or lack confidence in the effectiveness of local authorities in combating such crimes. On average, over three out of four respondents received more than two suspicious text messages or calls in the last month, with Singapore (95%) having the highest incidence.  

In conclusion, the prevalence of scams across Southeast Asia varies significantly, with Singapore's incidence rate at 29%, and Vietnam leading with a staggering 61%. The correlation between strong law enforcement and lower scam rates cannot be ignored. A proactive approach to investigating and prosecuting scammers sends a powerful message that fraudulent activities will not be tolerated. This not only acts as a deterrent for scammers but also instills confidence in the general public. 

"The thought that it will not happen to me – that is the greatest challenge" as emphasized by individuals who often underestimate the risk of falling victim to scams. To effectively combat scams in the region, a comprehensive approach is crucial. Public education and a strict stance by governments to prioritize the fight against scams can create an environment that is hostile to scammers and protects consumers from falling victim to their deceitful tactics.

Milieu Insight is Southeast Asia's leading consumer research and data analytics company, renowned for its expertise in providing brands and businesses with valuable insights and market research data. Operating in Singapore, Malaysia, Thailand, Indonesia, Philippines and Vietnam, Milieu Insight’s industry-transforming solutions were awarded several prestigious awards, including Campaign Asia’s Market Research Agency of the Year (Gold) and Tech MVP 2022. Its one-stop insights platform, Canvas, offers tools for analysing and visualising consumer opinion data across a multitude of lifestyle topics and sectors, powering businesses to make better, more impactful decisions and strategies. 

Methodology: Based on Milieu Insight surveys with N=500 respondents in Singapore, Thailand, Vietnam, Malaysia and Indonesia conducted in March 2023.