New moves tackling social media ads long overdue; will stem scam scourge: Experts
But experts cautioned that the new measures are not foolproof and urged consumers to stay vigilant.
Experts believe new rules targeting misleading advertisements on social media platforms have been long overdue and could significantly curb the scam problem. However, these measures are not foolproof and require users to remain cautious. For example, scammers could impersonate legitimate advertisers by exploiting official company ads.
Among a series of anti-scam measures announced by the Singapore police on August 18, Facebook, Instagram, and TikTok must verify the identities of advertisers against government records. The platforms must also block ads from unlicensed financial service firms and remove suspicious ads promptly. Leong Zhen Yang, an associate at IRB Law, cautions that a company's MAS licence does not guarantee the safety of its advertised investments.
"The advertisement may have been placed by a rogue representative or a scammer impersonating the licensed company," he warns. "Consumers should verify the specific investment through the company's official contact channels." Associate Professor Hannah Yee-Fen Lim, from NTU's Nanyang Business School, notes that the blocking of unlicensed financial ads online is similar to regulations in offline physical spaces in Singapore.
"Currently, physical ads are not allowed to be displayed in physical spaces like on MRT trains if they are not licensed by MAS or other authorities. Blocking ads from unlicensed advertisers should have been implemented sooner given the surge in online scams," she adds. While scam losses declined slightly in 2025, they remain high.
Leong suggests that regulatory and compliance costs could be reasons why such blocking was delayed. Other police measures aim to tackle online scams, including mandating messaging services to display the country of origin for unsolicited calls or messages. NTU's Lim believes this will serve as a warning if the user is unfamiliar with the country.
Messaging services covered by this rule include WhatsApp, Telegram, WeChat, Apple iMessage, Apple FaceTime, Google Message, and Google Meet. The new rules will come into effect on January 31, 2027, with violations punishable under the Online Criminal Harms Act, potentially leading to fines of up to $1 million. Leong advocates for continuous verification of advertisers' identities, as the initial check may become obsolete if the advertiser loses its licence, changes ownership or promotes a different product.
Leong points out that scammers may shift to less visible methods, such as ordinary-looking posts, livestreams, influencer content, or private messages and closed chat groups, urging authorities to clarify how the rules apply to these scenarios. Experts agree that a holistic approach involving various stakeholders, such as payment service providers, online marketplace service providers, users, and law enforcement authorities, is necessary to effectively combat online scams.
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