HYIPs Classified as Online Cheating Cases in Singapore

And as a matter of fact, I’m sure its the same to all government laws and regulations on High Yield Investment Programs and I’m urging everyone never to get involve with them. 2 years ago I was involved in something pretty serious by a scam running in Malaysia by the name of PIPs and until now I still feel guilty of getting people into this scam ring unknowingly.

Since then, nothing is real. As long as you don’t have legal papers on your investing firm, don’t get involved with them. Mark has also written a piece on HYIP investors may face money laundering charges, as with Jamaican laws might even apprehend people who knowingly gets involved with HYIPs.

You can find out more about Singapore on Wiki, a lovely country that I reside in.

Here’s a blurb from a public Miss Ellen Lee to Deputy Prime Minister Wong Kan Seng of Singapore on online cheating cases (source: Ministry of Home Affairs, Singapore)

Q: To ask the Deputy Prime Minister and Minister for Home Affairs (a) what is the number of reported cases of online cheating scams in the past 2 years; (b) what is the number of these reported cases where the culprits were arrested; (c) what are the measures undertaken by the police to detect and prevent such online scams; and (d) whether the police works with Interpol or other agencies as these crimes often involve an element of extra-territoriality.

A: The number of online cheating cases over the past 3 years has remained about the same: 61 cases in 2005, also 61 cases in 2006 and 57 cases, slight drop of 4 cases, in 2007. The most common situation is where someone places a false advertisement of a product or service on the Internet to induce victims to place orders online and make electronic payment. The victim then realises that he has been cheated only when the goods fail to arrive. Other online cheating scams involve fraudulent High Yield Investment Programs (HYIP), credit card frauds, lottery scams and advance fee scams.

The number of cases solved in 2005, 2006 and 2007 was 29, 28 and 12 respectively, representing a ratio of about 40% of cases solved. The number of culprits arrested over the same 3 years was 22, 9 and 15 respectively.

Our strategy to combat online cheating has 3 key thrusts. First, Police works closely with the Monetary Authority of Singapore, financial institutions, and foreign law enforcement agencies including Interpol to share fraud-related intelligence and best practices. A framework is in place for local financial institutions to detect, monitor and report suspicious transactions. Under Section 39 of the Corruption, Drug Trafficking and other Serious Crimes Act (CDSA), it is mandatory for a person to make a Suspicious Transaction Report (STR) if he has reason to suspect that any property is connected to criminal conduct, and if such suspicion arose in the course of his trade, profession, business or employment.

The second thrust is public education. Police actively engages industry stakeholders, including the media, financial institutions and remittance companies, online merchants and grassroots organizations to apprise them of common online scam scenarios and educate them on crime prevention methods. Police also puts out crime prevention advice on common scams through the Media, using SMS messages and through websites of the Commercial Affairs Department (http://www.cad.gov.sg) and Moneysense websites (http://www.moneysense.gov.sg). Crimewatch has also alerted Singaporeans not to be fooled by these scams.

Third, we have put in place a robust legal framework to punish online scammers and deter other like-minded persons. Online scams constitute cheating offences and are punishable under the Penal Code with imprisonment terms of up to 3 years or 7 years. An individual who knowingly facilitates online scams by allowing syndicates to use his bank account to receive proceeds of criminal conduct is also guilty of an offence under the Corruption, Drug Trafficking and other Serious Crimes Act (CDSA).

The key to tackling this scourge in the longer term is that the public should remain vigilant. They should not let their desire for quick gain get the better of them. Please do not fall prey to online cheating scams as their promises of riches or easy money are illusory. The public should also not allow their bank accounts or personal details to be used by online scammers. Any attempt by such scammers to elicit money or to use your bank accounts should be reported to the Police.

Bravo for Singapore’s stringent regulations that manages to keep internet reported crimes at such low rate, though human’s greed to get rich more often than not are often exploited for money laundering by syndicates.

This gets people who values privacy that uses Digital Gold Currency like E-gold, E-bullion, Pecunix into business risk as there’s always a chance any regulators might just shut them down since syndicates tend to use them as vehicles for in and out exchanging their ill-gotten gains.