Why Idle Cash Attracts Scammers & How to Beat Them October 15, 2025

You may come across news about scams on your social media feeds. Recent headlines such as “Scam victims in Singapore lost $456m in the first half of 2025” raise alarm. From investment fraud to phishing emails and fake trading apps, online scams are on the rise. Many of these schemes prey on people with idle cash, basically – money sitting in their bank account without any active management.

Common examples of scams include fake “high return” investment platforms promising 10-20% per month, social media scams where strangers solicit “joint investments”, and insurance premiums scams, where callers pose as insurers, claiming that you have “outstanding premiums” to pay or risk a policy lapse.

When “Safe” Investments Turn Out to Be Scams

Someone close to me once fell for a scheme that seemed harmless at first. The scammers convinced him that he could “book hotel rooms” online as an investment. The pitch sounded safe: invest some money, wait for tourists to check in, and then receive both your capital and profit when they check out. It sounded good, but of course, there were no hotels, no tourists and no returns. Fortunately, he didn’t lose everything, but the stress and the near-miss experience were painful reminders that scams don’t just target the greedy, but also prey on the trusting, the busy and anyone with idle funds seeking an opportunity.

Recently, a client called to check if she had any outstanding premiums. She had received a call demanding immediate payment or risk lapsing her policy. Fortunately, she was aware of such scams and contacted me before making any payments. However, this type of scheme can be convincing, as most Singaporeans own some form of insurance, making the scam appear genuine.

Here are some important reminders:

1. Legitimate insurers will never ask for your PIN or bank login details.
2. Premium payments should always be made through official company channels.
3. The best safeguard is to schedule annual reviews with your trusted financial advisor, so you’re always clear on which policies you have and when your premiums are due.

Even if you do not fall for scams, idle funds carry another silent risk — underutilisation. Cash sitting in a bank account and earning little to no returns is especially vulnerable in today’s high-inflation environment. You might think idle money is “safe”, but in reality, it’s either exposed to scams or quietly losing purchasing power.

This is where SMART Park makes a difference. Once you have opted in to SMART Park – Excess Funds Facility and transfer the money into your POEMS account, the funds will automatically be placed into the money market fund. Your cash then generates daily returns, which you can conveniently view from the POEMS Mobile 3 app. Enjoy full flexibility — your funds in SMART Park stay liquid and can be accessed anytime you need them. Simply submit a withdrawal request, and you should receive the funds within 1 working day. This adds an additional layer of security before you decide how to use your funds.

Think of SMART park as a secure parking lot: instead of leaving your “car” in a dark alley (where scams lurk), you’re parking it in a well-lit and guarded facility. In short, SMART Park is low risk, liquid and generates better returns.

Scams often thrive on two things: greed—chasing unrealistic returns, and inattention—ignoring idle money or losing track of your insurance details. By parking your funds in SMART park and staying connected with your advisors, you address both risks: avoiding the lure of risky schemes while letting your money work for you safely and automatically.

In today’s world, protecting your wealth is not just about steering clear of scams; it’s also about ensuring your cash isn’t left idle and unproductive. With SMART Park, you can be confident that your funds are managed and are growing steadily in the background.

Often, the most harmless-looking attempts by scammers can cause the biggest damage. The smarter choice is to keep your cash somewhere both secure and productive.

Ask your advisor today how SMART Park can make your idle cash work for you!

Contributor:

Elin Chee
Financial Services Manager
Phillip Securities Pte Ltd (A member of PhillipCapital)
http://bit.ly/TTPelin

Appendix:

• ^[1] https://www.straitstimes.com/singapore/scam-victims-in-spore-lose-record-1-1-billion-in-2024-highest-number-of-cases-ever-reported

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