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Grandson highlights alleged scam that targets seniors, Government agencies remain quiet despite the complaints

Published

5 years ago

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On Friday (28 June), a concerned grandson named Jeryl Ng took to his Facebook to a share a “legal scam” case that sells a magical “electric chair” targeting seniors, including his “illiterate grandma”.
He wrote this post after his grandma almost became a victim of this alleged medical scam, and wanted to raise awareness and warn other seniors before they get cheated of their savings.
In Mr Ng’s post, he said that the elderly woman got to know about this alleged business scam after her neighbourhood friends introduced it to her. They mentioned that this magical “electric chair” is capable of potentially curing any diseases like stroke, diabetes, arthritis and even cancer.
However, the chair comes with a hefty price tag of S$26,000 for the most basic model, and the salesperson who spoke to Mr Ng’s grandma emphasised that the chair “is a family heirloom that can be passed down for generations.”
As such, the elderly woman was convinced to make a purchase as she had some money in her bank account that she will be able to retrieve in two months’ time.

How it all started

After learning about this incident, Mr Ng was worried about this scam and wanted “to find ways to help her before she spend the money and regret”. As such, he agreed to listen to her side of the story to understand the whole situation better.
Mr Ng found out know that his grandma has been visiting the “Bedok branch for 3 months on a daily basis without fail”. He also learned that the business first told all their customers that it’s free of charge and they can come to the centre to use the chair as often as they want.
As expected, senior citizens and sickly individuals flocked the place for the free sessions.
“During the sessions, she saw a lot of photo claims about illness being cured by the machine – cancer, stroke, diabetes, joint issues and even skin burns. During the sessions, she would also hear positive feedback from people beside her about their illnesses were healed after using their products and such,” he wrote.
However after a month, Mr Ng mentioned that the people in the centre told her about the product and how convenient it would be for her to use it in the comfort of her own home. Without mentioning the cost, they also noted that everyone is getting to use the chair for free, thanks to their good-hearted boss.
However in the second month, Mr Ng said that his grandma was told that the shop had to be closed soon because the chairs are selling like hot cakes. They also said that they want to move to a new place due to the increasing rental cost.
After inquiring about the price, she found out that it costs S$26,000 for the basic and S$36,000 for the premium model. Although the price is on the higher end for most individuals, the company convinces the seniors by saying that it’s cheaper in the long run, compared to spending a huge sum on medicines and surgeries for illnesses like cancer.
“Now it suddenly becomes worth it, cause it’s $26K with complete cure versus S100K surgery without cure,” he wrote.
If that is not all, Mr Ng also explained that the company “apply psychological techniques” on these seniors by saying that they look a lot healthier after using the chair. He added that they also went to the extent of convincing his grandma to reduce her medications, which resulted to her halting her scheduled knee cap surgery.
“She kept repeating that the machine will cure her in time so there’s no need for any surgery, she said that her “friend” even stopped diabetes medicine for a few years on this machine. This led to me considering the possibilities that the company hired fake actors to claim that they had been cured, to convince the seniors ‘there, they have human evidence,’” he noted.
Come the third month, the grandson wrote that the salesperson said that their sales were overwhelmingly good and are left with only 4 sets, and are now selling it at S$17,000. Due to the good bargain, his grandma placed a down-payment of S$2,000.
After she paid S$2,000, it caused a lot of family drama as Mr Ng’s parents and aunts didn’t approve her purchase and asked her to get a refund. In an attempt to show his support for his grandma who was visibly upset with the whole incident, Mr Ng said that he along with his wife convinced her to go to another branch as they wanted to try it for themselves.

Mr Ng’s personal experience of the “scam” business

Upon entering the new centre, Mr Ng immediately noticed CCTVs around the area with posters stating no recordings are allowed.
“We were waiting quietly and I started looking around, a middle aged lady seemed to be moving her head around, perhaps looking for someone to fish I supposed? Out of nowhere, she started to talk to my grandma saying that her leg cured completely without medication just after 3 attempts. Yeah, really fishy,” he said.
As expected, Mr Ng said that the salesperson also targeted them as they were new to the centre. After asking multiple questions to the salesperson like how this machine can cure illness and what is the connection between electrons and breast cancer, Mr Ng noted that the man failed to answer his questions.
Convinced that this was a scam and not a legitimate business operation, Mr Ng went back home to persuade his grandma by using “reverse psychology”. Thankfully, the elderly woman finally understood the whole situation and she was even “a little angry of herself for causing harm to people around her”.
As such, he said that people should be aware of this issue and ensure that their parents are not cheated out of their life savings.
“Brainwashing may have been around for hundreds of years but the techniques are being improvised regularly to make them harder to notice, especially for desperate seniors that are looking for fast cure. Do not quarrel with the victims as they had been treated very well by those salesperson, doing so would only cause them to doubt you even more. Go and look for professional help if you have trouble communicating,” he stressed.

Mr Ng also shared with TOC an audio clip of such sessions where the speaker first told that husbands may seek for another woman if their wife has to remove their breast due to cancer, and “women are not perfect without their breasts”. After wasting almost an hour listening to the speaker’s explanation, Mr Ng pushed him to talk more about the machine and what it does. It was then when the speaker claimed that our body charges electricity with the machine, which Mr Ng then questioned if anyone can verify if our body can actually be charged like battery.
The speaker also went on further and talked about positive and negative ions, and said that stoke is caused by “wire cut”, therefore electricity can’t pass through, and claimed that human body can use machine to charge, indicating this is something that the machine can do.

In the comment section of his post which had more than 250 responses, many netizens thanked Mr Ng for bringing up this issue so that more people will be aware of this kind of scams targeting elderly individuals. Some said it’s a “sin” to be cheating the elderly and too many of them “fall prey to these unethical marketing ethics”.



A bunch of them also highlighted different places in Singapore that have these “scam” centres, some even in their neighbourhood.






A few of them said that Mr Ng should make a police report of this centre and report to CASE, MOH, MPs as well as the media so everyone will be aware of this horrible scam.



In fact, Facebook user Samuel Ling said that he had reported of such business scams to various parties like the police, CASE, HSA, press as well as his MP as he had been “following these guys since 2015”. Mr Ling wanted to report about them as he thinks their “sales tactics and their targeting of the elderly and vulnerable, coupled with the high price of their machines, is unconscionable”.
However, he noted that all his complaints were futile as all the parties ended up referring him to different groups. Since he is not a victim himself, he said that “the authorities have been unwilling to take action on this” and “because they believe a ‘caveat emptor’ (buyer beware) approach is sufficient”, all his attempts were basically a wild goose chase.

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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.

Published

1 year ago

on

19 July 2023

By

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.

Published

1 year ago

on

14 July 2023

By

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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