Singapore – Consumers are being urged to be extremely cautious as scammers are increasingly posing as car finance lenders, offering bogus compensation claims in exchange for personal information. The Financial Conduct Authority (FCA) in the UK has issued a warning, and similar tactics are likely to be employed here in Singapore.

How the Scam Works

These fraudsters typically contact individuals via phone calls, often claiming they are entitled to compensation related to their car finance agreements. They might allege that there were issues with how interest rates were calculated or that consumers were mis-sold certain products. The offers sound enticing, promising a quick and easy payout.

However, the real motive is to steal your personal data. Scammers will request sensitive information such as your full name, address, date of birth, bank account details, and even your identification card (NRIC) number. This information can then be used for identity theft, financial fraud, and other malicious purposes.

Why You Should Be Wary

• Unsolicited Contact: Legitimate compensation claims are usually initiated by the consumer, not the lender. If you receive an unexpected call offering compensation, be immediately suspicious.
• Pressure Tactics: Scammers often use high-pressure sales tactics, urging you to act quickly before the “offer” expires. Don’t fall for it.
• Requests for Personal Information: Never provide personal or financial details to someone you don’t know and trust, especially over the phone.
• Vague or Unclear Explanations: Be wary of offers that lack specific details about the basis of the compensation claim.

Protecting Yourself

Here are some steps you can take to protect yourself from these scams:

• Verify the Source: If you’re unsure about the caller, hang up and independently verify their legitimacy. Contact your car finance provider directly using their official contact details (found on your loan agreement or their website).
• Don't Share Personal Information: Never share personal or financial information with unsolicited callers.
• Be Suspicious of Unsolicited Offers: If it sounds too good to be true, it probably is.
• Report Suspicious Activity: Report any suspicious calls or emails to the Singapore Police Force (SPF) and the Personal Data Protection Commission (PDPC).

Resources to Help

• Singapore Police Force (SPF): https://www.police.gov.sg/
• Consumer Association of Singapore (CASE): https://www.case.org.sg/
• National Crime Prevention Council (NCPC): https://www.ncpc.sg/

Stay vigilant and be aware of these scams to protect yourself and your finances. Remember, it's always better to be safe than sorry!