E-commerce Marketplace Transaction Safety Ratings

E-commerce scams are one of the top scam types in Singapore. In 2021, there were more than 2,700 number of cases reported, with about $5.8million in losses. To safeguard consumers when they transact online, the Transactions Safety Ratings (TSR) is introduced.

Do you know...

Consumer Advisory

The Consumer Advisory provides advice on features that consumers can look out for, and how they can protect themselves when transacting online. Here are five features which we think may be useful!

1. Verification of seller identity. You can protect yourself by transacting only on platforms with robust user verification processes. Where possible, only transact with sellers whose identities have been verified by the marketplaces against Government-issued documentation (e.g., NRIC, UEN). This is because scammers are more likely to use unverified accounts to list their products and services. You can also refer to seller reviews before transacting with non-verified sellers.
2. Availability of secure payment solutions. You can protect yourself by utilizing in-platform secure payment options (where available), such as escrow payment systems, when making online purchases. In the absence of secured payment options, scammers are more likely to take the conversation off the platform (e.g., via Telegram or WhatsApp), and direct buyers to make payments through other channels (e.g., PayNow / bank transfers). Where secure payment options are not available,  you canrequest to transact in-person to confirm receipt of items before making payment.
3. Monitoring for fraudulent seller behaviour. Look for platforms with processes in place to continuously monitor for fraudulent seller behaviour. You can do your part by promptly reporting suspicious activities or accounts.
4. Maintenance of transaction records and user data. Look for platforms which maintain transaction records and user data, as they are well-positioned to investigate and mediate disputes. You can do your part by keeping all transactions and communications with sellers within the platform where possible.
5. Reporting and dispute resolution mechanism. Look for platforms with suspicious listing reporting and dispute resolution mechanisms in place. You can do your part to keep platforms safe by promptly reporting to platforms, suspicious listings or errant sellers who fail to fulfil transactions.

Let’s see how the various platforms perform in relation to these five features…

Click on the logos of the platforms to find out more about each platform's features

	B2C	B2C	B2C	B2C, C2C	C2C	C2C
Verification of seller identity					Optional	-
Monitoring for fradulent seller behaviour
Availability of secure payment solutions					Optional	-
Maintenance of transaction records and user data
Reporting and dispute resolution mechanism						Reporting of suspicious listings is available

Guidelines on Securing E-commerce Transactions from Scams

E-commerce industry players that wish to secure e-commerce transactions from scams may refer to the guidelines in Technical Reference 76 “Guidelines for Electronic Commerce Transactions” (“TR76”) published by the Singapore Standards Council. TR76 was updated in 2022 to include a set of guidelines on measures which e-retailers and e-marketplaces can put in place to secure e-commerce transactions and better protect their consumers. These guidelines were formulated in consultation with representatives from the e-commerce industry, government agencies and institutes of higher learning.

The updated TR 76 can be viewed at: https://www.singaporestandardseshop.sg/Covid19/Desktop. A printed or PDF copy may also be purchased at the Singapore Standards eShop.