Police warn Fun Coffee victims against fake fund recovery services

SINGAPORE: The Singapore Police Force (SPF) on Thursday (Aug 27) warned of fund recovery services scams targeting victims of the Fun Coffee investment scheme.

The scammers claim to represent Fun Coffee or a third-party service provider and offer to help victims recover money lost through the platform, police said in a news release.

Victims are then instructed via online messages to make payments through bank transfers for purported deposits, tax payments, or fees required to facilitate the recovery of funds. 

“Victims only realised that they had been scammed, when they did not recover their funds as agreed despite making the payments,” the police said.

The warning comes after authorities said earlier this month that the Fun Coffee platform resembles a pyramid-selling scheme. Users were required to download the application and transfer Tether (USDT), a cryptocurrency pegged to the US dollar, into digital wallet addresses provided through the app.

Participants of the investment scheme in Singapore were subsequently unable to withdraw their funds through the Fun Coffee application, the police said. 

The South China Morning Post previously reported that victims were believed to have lost close to HK$100 million (US$12.7 million) through the scheme. 

Members of the public should be cautious when individuals, online services or websites offer to help recover funds lost to scams or investments, the police warned. 

The police also advised the public to install the ScamShield app, enable two-factor authentication on their Apple ID and cryptocurrency accounts, and set transaction limits where available.

Anyone who encounters a purported fund recovery service or suspects that they have been scammed should report it to the police immediately. They should also contact their bank if their bank account or payment credentials have been compromised.