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Singapore Police investigating rental scams that defrauded six groups of victims over S$30,000

Multiple reports have emerged of a landlord in Singapore collecting rent and deposits from over 30 groups of people since 2019 but refusing to rent out the property.

The police are investigating a case where the landlord allegedly cheated over $30,000 from six groups of victims.

Victims were given various excuses for not being able to move in, and suspicions arose when they discovered other affected tenants.

The victims have filed police reports, and the incidents highlight the increasing number of home rental scams in Singapore via online platforms.

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SINGAPORE — A landlord has been accused of collecting rent and deposits from over 30 groups of people since 2019 and then making various excuses not to rent out the property.

Multiple reports have been lodged against the “landlord” recently. The police are investigating a case involving a man who allegedly cheated more than $30,000 from six groups of victims in exchange for renting a flat in Jurong.

Shin Min Daily News, a local Chinese media outlet, reported that a 34-year-old accountant named Lin was one of the victims affected by a rental scam. She had posted a rental query in March and was contacted by a man named Alan, who offered her a four-room Housing Board flat.

“He explained that his decision to rent out the unit was due to his wife giving birth to a son in Vietnam, which added to his burden.”

After viewing the unit, Ms Lin decided to rent it and transferred $6400 for rent and deposit.

However, the landlord repeatedly postponed the move-in date after the signing of the contract, until the deadline of 1 May, when he informed Ms Lin that he would not rent out the unit.

Acting on her suspicions, Ms Lin went to the landlord’s house to demand an explanation and unexpectedly met another group of tenants downstairs, who were waiting with their luggage to move in that night.

‘Landlord’ told a different story to another victim

Another victim, a 25-year-old accountant named Hong, planned to rent a property with two colleagues, and the same landlord contacted them.

“The landlord claimed that his father had passed away, and he planned to move with his family to his father’s unit before deciding to rent out the property.”

Hong paid a deposit of S$2,300 for one month.

“The landlord originally said that we could move in one day early, but when we were ready to move in, he suddenly said that we couldn’t.”

After discovering more victims, Ms Lin later founded a Facebook group and learned that the total losses suffered by six groups of people were about S$30,000. They all filed police reports against the landlord.

‘Landlord’ kept postponing the handover with various excuses

In March this year, one of the victims came across a rental advertisement on Carousell, an online marketplace. The victim proceeded to transfer a sum of S$12,216.68 to the male landlord, which included payment for one month’s rent, two months’ deposit, and S$316.68 designated as “stamp duty.” The victim later filed a police report to document the incident.

Similarly, the landlord repeatedly postponed the move-in date and disappeared after the account was blocked.

Glenice Goh, another victim, shared on Facebook that she was asked to transfer S$3,000 to the landlord in March for the rental unit, but the handover was repeatedly postponed with various excuses.

Ms Goh had to look for a new rental unit as her previous landlord intended to sell his house. She found a nice unit on iLive SG and contacted the landlord, who told her that his visa to Vietnam was approved for four years and that he would fly over in mid-April to hand over the unit.

Nothing suspicious at first

“After verifying his IC and HDB ownership, and obtaining his consent to take a photo of his IC, we signed a one-year contract with him and transferred one month’s deposit plus one month’s rent in advance to him.”

“We also saw him submit our tenant information, and he even said that he would notify us once he purchased the plane ticket. There was nothing suspicious about it,” said Ms Goh.

Ms Goh shared that the landlord even offered them a two-year contract, but she declined.

In April, the landlord informed her that he had to postpone his flight due to his son’s hand-foot-and-mouth disease.

“When I asked if we could move in on 1 May, he replied confidently that we could.”

On the 17th of last month, the landlord texted Ms Goh to inquire about their move-in date.

She replied that the latest date was 30 April, as that was the last day of their current lease.

The landlord initially suggested they move in after Hari Raya but later said he could only hand over the unit mid-week. He promised not to delay.

On 29 April, Ms Goh messaged the landlord again, asking when they could move in. He replied that he was still doing some work on the unit and would hand it over to them as soon as possible. He also suggested refunding their payment if Ms Goh was worried.

On 30 April, the landlord messaged to say he needed a few more days and apologized.

However, as Ms Goh’s lease with the former landlord was ending on that day, she panicked and called the landlord, but he didn’t answer.

“Until I told him that if he didn’t reply, I would report him to the police, then he replied to me with “Go report ba. Give your account too I will refund.”

Ms Goh later complained about the matter to the police. Fortunately, Ms Goh was able to secure another new rental unit on 1 May with the help of friends and family.

Minister Sun Xueling announced that in 2022, the number of home rental scams via online platforms increased to 979 cases from 192 cases in 2021.

She also stated that the police are collaborating with online platforms to remove suspicious accounts and ads, and working with the Council for Estate Agencies to issue rental scam advisories on social media.

 

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Consumer Watch

Indonesian financial authority warns against risks of online loans for concert tickets amid rising fintech usage

The Indonesian Financial Services Authority (OJK) warns against using online loans to purchase concert tickets, highlighting the risk of falling into high-interest debt traps.

Financial experts emphasize the risks involved and advise caution in borrowing for consumptive purposes.

Consumers should carefully consider financial knowledge and repayment abilities to avoid financial distress.

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INDONESIA — In a recent statement, the Financial Services Authority (Otoritas Jasa Keuangan or OJK) has advised the public to exercise caution when selecting financial technology (fintech) lending or online loan (pinjol) services that offer loan promotions for concert ticket purchases.

The warning comes in response to the increasing number of advertisements by pinjol providers offering loans specifically for buying concert tickets.

When interviewed after the Indonesia Sharia Financial Olympiad (ISFO) event on Monday, May 22, Friderica Widyasari Dewi, the Executive Head of Financial Services Authority for Behavior Supervision of Financial Services Providers, Consumer Education, and Protection at OJK, stated that there had been numerous advertisements for online loans promoting the purchase of concert tickets.

This statement was confirmed by Mahendra Siregar, the Chairman of the Board of Commissioners of the Financial Services Authority (OJK), who mentioned an increase in the demand for online loans prior to the sale of Coldplay tickets at the Gelora Bung Karno Main Stadium in Jakarta on 15 November this year.

Despite the relatively high-ticket prices ranging from Rp800,000 to 11 million rupiahs (US$730), depending on the seating and view, ardent fans of the British rock band showed extraordinary enthusiasm. Their motto is, “Money can be earned, but when else can we watch a Coldplay concert if not now?” even though ticket sales were conducted during a financially challenging month.

Consequently, online loan services have become a viable option for many, despite the high-interest rates. They are willing to bear the high fees associated with online loans because they believe it is worth it for the happiness and experience they will gain.

To address this situation, the Financial Services Authority (OJK) took to their official Instagram account to remind the public to avoid falling into the trap of illegal pinjol companies.

They listed several characteristics of illegal pinjol providers to be wary of, including easy requirements with only an ID card as collateral, unclear owner and office addresses, offers made through SMS or WhatsApp, ambiguous interest rates and penalties, lack of complaint services, requests for access to personal data, and absence of OJK permits.

However, some members of the public still believe that both illegal and legal pinjol services treat customers similarly, making it difficult to distinguish between the two.

Devie Rahmawati, a Social Observer from the University of Indonesia, shed light on various factors driving people to go to extreme lengths to obtain Coldplay concert tickets.

She explained that in this digital era, there are different social typologies, such as the experience economy and attention economy.

The younger generations, including Gen Y, Z, and now Alpha, prioritize experiences over ownership and actively seek various experiences. The digital world serves as a platform to showcase oneself, making experiences a crucial element.

According to Devie, in the attention economy era, everyone strives to garner attention and be seen as existing.

She emphasized that ownership alone cannot make a person authentic or gain attention as a means to achieve recognition.

However, experiences, which not everyone can have, can be displayed and thus become valuable. The rare experience of attending a Coldplay concert is driven by the fear of missing out (FOMO) that is currently infecting the digital community. Devie further noted that music is an inseparable part of the younger generation, especially in the digital realm.

Furthermore, Devie pointed out that digital creatures are the most stressed individuals. As a result, one way to relieve stress is through music.

The ticket frenzy and the phenomenon of easily resorting to online loan services occur due to the combination of various factors, including the experience economy, attention economy, FOMO, and catharsis as a means of releasing stress.

Devie also stated that this phenomenon is closely related to capitalism, an economic system that allows everyone the freedom to engage in economic activities for profit.

She believes that individuals who dare to apply for online loans for something they consider will bring them happiness should not be entirely prohibited. However, they must possess financial literacy and the ability to repay their debt.

If acquiring a loan brings them happiness and enhances their enthusiasm for work, making them more productive and enabling them to repay their debts, it should not be a problem.

However, when such decisions are made without careful consideration and sound financial knowledge, it can lead to disaster.

Other financial experts have voiced their concerns. Ahmad Gozali, a Financial Planner from Zelts Consulting, emphasized that taking on high-interest debt, such as online loans, solely to purchase concert tickets, is a risky financial decision.

“Taking on high-interest debt, such as online loans, is a definite red flag,” warned Ahmad in a WhatsApp interview with Liputan6.

Rahma Maryama, an independent financial planner, also cautioned against incurring debt for consumptive purposes like concert tickets.

She suggested that loans or borrowing should be avoided unless they are used for productive activities. Rahma further outlined specific conditions for borrowing, including having a realistic understanding of one’s financial situation, having a stable income to repay the loan, and being able to arrange for prompt repayment.

Moreover, Rahma stressed the importance of not settling one debt by acquiring new loans, commonly known as a cycle of debt. This cycle can lead to further financial distress and should be avoided.

The convenience and speed of obtaining funds through online loan services have tempted many individuals without thoroughly examining the credibility and status of the service providers.

Rahma emphasized the need for online loan providers to be under the supervision of regulatory authorities.

She warned against being lured by features or facilities that seem too good to be true. Every loan product comes with its own risks that should be carefully considered.

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Consumer Watch

Singaporean doctor continues to encounter unauthorised charges despite 3 credit card replacements

A Singaporean doctor experienced unauthorised charges exceeding $3,600, including four transactions to AirAsia, despite her efforts to block and replace her credit card.

The case adds to the growing instances of fraudulent card usage, highlighting concerns among cardholders and leading to a warning from the Singapore Police Force about similar scams.

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SINGAPORE  — Singaporean doctor was surprised to discover that her credit card details were still being used to make payments to AirAsia, even after she had attempted to block and replace her card two more times in an effort to stop these transactions.

The case contributes to the increasing number of reports by credit and debit cardholders in Singapore and internationally regarding fraudulent use of their card details to purchase services from legitimate companies such as OpenAI and Apple, while similar scams targeting Android users have also prompted a warning from the Singapore Police Force.

According to The Straits Times, the incident involved Dr. Zena Lim, an ophthalmologist who replaced her card after noticing that AirAsia had charged her UOB credit card for two transactions totaling over $1,060, which she did not authorize.

In total, over $3,600 in Malaysian ringgit and US dollars were taken from her bank account through six unauthorized payments, with four of them made to AirAsia.

While UOB has reversed the unauthorized payments from Dr. Lim’s account, the mystery remains unresolved. She has reported the matter to the Monetary Authority of Singapore (MAS) and the police.

Expressing her frustration, Dr. Lim questioned how it was possible for the same merchant to charge three different card numbers over a span of nearly two months without requiring authentication.

Merchants have the option to activate 3D Secure authentication, an additional safety feature that prompts customers to enter a password or code sent to their phone by their bank before a payment can be made.

She remains frustrated by the lack of answers regarding how this could have happened.

It should be noted that the only instance when Dr. Lim purchased an AirAsia ticket was when she bought her helper’s air ticket through eNets debit on her computer, using her DBS bank account.

A spokesperson from UOB (United Overseas Bank) mentioned that the bank has provided assistance to Dr. Lim and will support the investigation as needed.

The bank also emphasizes the importance of customers being vigilant about the security of their physical and digital cards, advising against sharing card and banking details with anyone, including family or household members.

The UOB spokesman said the bank has lowered the default threshold limit for all its card notification alerts to $500 as a preventive measure to help fight against card fraud.

As a preventive measure against card fraud, UOB has lowered the default threshold limit for all its card notification alerts to $500.

Additionally, customers have the option to adjust their threshold limit to nominal amounts through UOB Personal Internet Banking. This enables them to receive notifications for any transaction made on their accounts.

Regarding AirAsia, the airline’s support page stated that redit card fraud is a global issue affecting various industries, including airlines.

The statement emphasizes the importance of immediately contacting the bank to block the card if fraud is suspected, and also urges individuals to reach out to AirAsia through their guest support channels for a prompt internal investigation into the matter.

Increasing number of similar fraud

In 29 May, content creator Daisy Anne Mitchell posted on TikTok that she lost $205 over eight days through 28 small transactions, including charges of $1 and $3, made from her POSB account to Apple.

https://www.tiktok.com/@daizamazze/video/7238486892973411585

Recently a preschool teacher also shared to TOC that she fell victim to a sophisticated malware scam, resulting in an unauthorized transfer of S$4,400 from her POSB Bank account to an unknown UOB account via the PayNow platform, possibly originating from a suspicious app she had downloaded two months prior.

The Singapore Police have issued a warning to Android users after at least two individuals lost an aggregate sum of S$99,800 from their Central Provident Fund (CPF) savings due to a new kind of malware scam in June.

In Singapore, banks are not required to compensate victims of online bank fraud. In January last year, OCBC reimbursed S$8.5 million (US$6.3 million) to 469 customers who fell for an SMS phishing scam in December 2011 out of goodwill.

In the United Kingdom, banks are required by legislation to compensate victims’ losses for transfers made due to APP scams (Authorized Push Payments). This applies in cases where users at a business send money to a bank account controlled by fraudsters.

According to a spokesperson from the Monetary Authority of Singapore (MAS) in June, customers cannot be held accountable for unauthorized transactions if merchants have not implemented one-time password authorization for online card transactions.

However, it is the responsibility of merchants to enable 3D Secure (3DS) authentication, an extra measure that mandates customers to input a password linked to their card or a code sent to their phone via the bank’s website before completing a payment.

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