Swipe with caution: Top payment scams to watch in 2025

AI-based fraud detection could help recognise suspicious patterns across multiple businesses.

Fraud in Singapore continues to evolve as cybercriminals find new ways to exploit vulnerabilities in digital payments, credit card service firm Adyen said.

Whilst Singaporean consumers and businesses are generally cautious, fraud attempts remain a persistent challenge.

Adyen listed the most common types of payment fraud in Singapore to be wary of this year:

1. Phishing
Phishing is one of the most widespread fraud tactics in Singapore. It involves fraudsters tricking individuals into revealing personal information, such as passwords and credit card details, often through fake emails or websites.

Even in markets with strong multi-factor authentication (3DS adoption), phishing remains a major risk. Stolen information from phishing scams is often used for card testing fraud or the creation of synthetic identities, making it harder to detect fraudulent activity.

2. Refund Fraud / Policy Abuse
Refund fraud occurs when fraudsters exploit a business’s return and refund policies for financial gain. This can involve fake refund requests, abuse of promotions, or repeatedly using free trials.

This type of fraud is especially common amongst subscription-based businesses, where scammers repeatedly sign up for free trials or resell access to digital goods at a discount.

3. Card Testing Fraud
Card testing involves fraudsters using stolen credit card details to make small transactions or sign up for free trials. If the transaction is successful, they sell the card information on the dark web at a higher price.

Businesses with subscription models or online payment gateways are particularly vulnerable, as fraudsters use their platforms to verify stolen card details.

4. Friendly Fraud
Friendly fraud, also known as first-party fraud, occurs when a legitimate customer disputes a valid transaction to get a refund while keeping the purchased product or service.

This is especially common with recurring payments. Consumers may forget about a subscription renewal and instead of canceling, file a chargeback with their bank, creating losses for businesses.

To limit these risks, Adyen suggested using AI-based fraud detection to recognise suspicious patterns across multiple businesses.

It also added the implementation of velocity risk checks to flag unusual transaction behavior, such as multiple purchases in a short period.