MOM Arrests Four in “Phantom Worker” CPF Fraud Investigation
On 2 September 2026, MOM arrested four people — two company directors and two staff — from the construction sector over a suspected “phantom worker” scheme. A further 21 people are assisting with investigations.
What allegedly happened: the directors are accused of making fraudulent CPF contributions for locals who were never actually employed by their companies, to inflate the foreign worker quotas those companies could claim. The inflated quotas were then allegedly used to bring in migrant workers, with kickbacks collected along the way.
Penalties employers should know:
- False work pass declarations: fines of up to S$20,000 and/or up to 2 years’ jail.
- Collecting employment-related kickbacks: fines of up to S$30,000 and/or up to 2 years’ jail.
- Convicted companies face a permanent ban on hiring foreign workers.
MOM’s own warning to individuals: don’t accept CPF contributions from a company you don’t actually work for — doing so can amount to abetting a false declaration, even if you’re not the one filing it.
