A 39-year-old man hired a female escort, with the woman then allegedly demanding $15,000 from him or she would report him to the police.
Out of fear, the man then paid her $1,8000.
The female escort, 27-year-old Singaporean Tanya Pal, was charged in court earlier today (8 March) with one count of extortion.
The woman is being accused of committing extortion on 5 March at about 3.30pm, at a unit in Block 397 Yishun Avenue 6.
The Singapore Police Force said in a statement that the man had paid Pal $1,800 first via a bank transfer, before reporting the incident to the police later that evening.
The woman was then identified by the police and she was later arrested within 19 hours of the police report being lodged by the victim.
The police added that Pal is believed to have been involved in three other similar cases that were reported to them, with a total of at least $19,000 being lost by the victims.
She was remanded for police investigation earlier today.
If convicted for extortion, Pal faces a jail term of between 2 to 7 years as well as caning; but because she is a woman, she cannot be caned under Singapore law.