The Financial Industry Disputes Resolution Centre Ltd (FIDReC) has reported a significant shift in the nature of financial disputes in Singapore, with scams and fraud now overtaking insurance payouts and investment issues as the leading cause of consumer complaints. Since 2021, the number of claims related to scams, including phishing and impersonation, has risen sharply, increasing by nearly 200% by 2025.
This surge in scam-related disputes marks a departure from the period between 2005 and 2020, when insurance and investment disagreements dominated. FIDReC attributes this change to the growing prevalence of digital banking and online transactions, which have made consumers more vulnerable to sophisticated scams. The current volume of claims has reached levels not seen since the global financial crisis of 2008, and FIDReC anticipates this trend will continue.
Eunice Chua, CEO of FIDReC, highlighted the evolving landscape of financial disputes, stating, “As FIDReC marks its 20th anniversary this year, we are reminded of how the nature of financial disputes has changed with time.” She emphasised FIDReC’s commitment to raising awareness and maintaining public trust in the organisation.
Common scams include compromised credentials through phishing and impersonation scams, where fraudsters pose as banks or government agencies. Challenges in addressing these issues include limited recovery mechanisms and the need for consumers to be vigilant in monitoring alerts and protecting their credentials.
As part of its anniversary, FIDReC will release a commemorative book on 10 October 2025, celebrating its role in resolving financial disputes in Singapore. The organisation remains dedicated to helping consumers and financial institutions navigate these challenges effectively.
