In the 2024 E-commerce Marketplace Transaction Safety Ratings, Shopee, an online marketplace, has been raised to the top tier. As in 2023, Carousell and Facebook Marketplace continue to occupy the lowest ranks in the rankings. Launched in 2022, the annual rating aims to inform customers on anti-fraud strategies put in place by big e-commerce companies. According to the Ministry of Home Affairs, this occurred in the midst of an increase in e-commerce scam cases, which doubled in 2023 over the previous year.
Shopee has ascended to the top spot in official security rankings for the first time, commended for its robust measures against e-commerce scams, according to the Ministry of Home Affairs (MHA). Carousell and Facebook Marketplace, however, remain at the lowest echelon. The MHA disclosed these findings from the E-commerce Marketplace Transaction Safety Ratings, a yearly report issued by the Inter-Ministry Committee on Scams.
Shopee’s rise to prominence is attributed to its comprehensive implementation of essential safety features over the past year, placing it alongside other top-rated platforms like Amazon, Lazada, and Qoo10.
In contrast, Carousell and Facebook Marketplace have consistently occupied the lower tiers since the inception of the ratings in May 2022.
The update on safety ratings follows Minister of State for Home Affairs Sun Xueling’s criticism of Meta, the parent company of Facebook, during MHA’s budget debate in Parliament on Feb 29. Meta was singled out for its lack of cooperation and resistance to MHA’s recommendations in combating scams.
These annual safety ratings aim to furnish consumers with insights into the anti-scam measures adopted by e-commerce platforms facilitating transactions between multiple sellers and buyers, particularly those with substantial local reach or a history of significant e-commerce scams.
Each platform’s overall safety grade reflects the degree to which important anti-scam procedures have been put in place.
They are predicated on the following: transaction safety, user authenticity, customer access to loss reparation channels, and the efficacy of their anti-scam methods.
One to four ticks is the highest ranking, and platforms that meet all essential anti-scam requirements and have few reported frauds are given this designation.
According to the most recent review, MHA stated that once Shopee fully implemented user verification against government-issued documentation for all sellers, its rating increased from three to four ticks.
“The number of reported e-commerce scams on their platform has reduced by 65 per cent, from 311 cases in 2022 to 109 cases in 2023,” said the ministry.
Amazon, Lazada, and Qoo10 are among the other platforms that received the four ticks rating; since the rating’s inception two years ago, all three have maintained the highest ranking.
Carousell and Facebook Marketplace continue to receive two ticks and one tick, respectively, placing them in the lowest two rankings compared to the previous year.
MHA said that based on the modus operandi used by e-commerce scammers, user authentication and secure payment options are considered as critical safeguards.” MHA stated, “Consumers should look out for seller accounts that have their identities verified against government-issued documentation by the platforms. Scammers are more likely to use unverified accounts to list their products and services.
“These safety features have proven to be effective in combating scams. E-commerce marketplaces that have put in place these safety features have seen significant reduction in e-commerce scams.”
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