Carousell, Facebook Marketplace Rank Lowest in Singapore's E-Commerce Safety Report
Updated: Dec 19, 2023
If you regularly use e-commerce platforms, you might want to be extra careful when shopping in Carousell and Facebook Marketplace.
The two online marketplaces had the lowest ratings in the second year of the E-commerce Marketplace Transaction Safety Ratings (TSR), an annual study published by the Inter-Ministry Committee on Scams (IMCS) that assesses the safety and security of online transactions.
The safety ratings assigned are meant to serve as a gauge for consumers to know how effective each ecommerce platform's security measures are at combating scams. Platforms are assessed based on user authenticity, transaction safety, availability of loss remediation channels for consumers and effectiveness of anti-scam measures. Based on the assessment, platforms then receive a rating ranging from one to four ticks, with four ticks being the highest.
All the ratings of the platforms were reportedly unchanged from last year's report, with Facebook Marketplace ranking the lowest, scoring only a single tick. Carousell ranked one place above it, with two ticks. Amazon, Lazada and Qoo10, on the other hand, sit at the top, with each one receiving the full four ticks. Shopee, meanwhile, secured three ticks.
The Ministry of Home Affairs noted that Facebook Marketplace lacks seller verification tools and secure payment options, while Carousell makes them optional. Amazon, Lazada, Qoo10 and Shopee, in comparison, have a whole suite of anti-scam tools.
The committee warned the public to only transact with sellers whose identities have been verified on the platform. It also advises to check for reviews of the sellers before proceeding with the payment. If possible, it also urges buyers to use secure payment solutions and keep transactions within the platform. Carousell, for instance, has CarouPay, which is an e-payment system that holds the buyer's payment from the seller until the item has been received.
"These scams generally involve the sale of goods and services online, where said goods and services are not delivered after payment has been made," warned the committee.
E-commerce scams are among the most prevalent types of scams in Singapore, with over 4,762 cases being reported in 2022, up 75% compared to the previous year. Three in five of the total reported cases were conducted on Carousell and Facebook.
When asked by The Straits Times on the ratings, Carousell explained that the majority of the transactions on the platform are between consumers, so there are more variables to guard against compared to transactions with businesses, for instance. The Singapore-based company, however, said that there are a number of features that buyers can use to better protect themselves against scams, such as CarouPay and deliveries facilitated by the platform itself.
"We allow the flexibility in the choice of transaction modes for meet-ups, as users will be able to verify the items and sellers in person for themselves," said Tan Su Lin, Senior Vice-President of Operations at Carousell. "We will share more details when ready."
Meta, meanwhile, said, "(The rating system) is an important effort to educate consumers but we note that it applies a uniform rating to platforms that have differing features and therefore have different ways of protecting their users."
Carousell and Facebook Marketplace had the lowest ratings in the second year of the E-commerce Marketplace Transaction Safety Ratings (TSR), an annual study published by the Inter-Ministry Committee on Scams (IMCS) that assesses the safety and security of online transactions.
The safety ratings assigned are meant to serve as a gauge for consumers on how effective each ecommerce platform's security measures are at combating scams.
Amazon, Lazada and Qoo10, on the other hand, sit at the top.