More than 50 cheated of $40,000 in latest scam involving iPhones

More than 50 cheated of $40,000 in latest scam involving iPhones

SINGAPORE - She wanted to buy an iPhone for her friend as a birthday present.

But she ended up losing $1,500 in an online shopping scam, she claimed.

Her case is one of 53 involving "mixed delivery order" scams reported to the police in the last two months.

That's more than twice the number of cases reported for the whole of last year, a police press release said on Sept 6.

The total amount cheated in the last two months? A whopping $40,000.

The 24-year-old administration executive, who wanted to be known as Nursha, had wanted to buy a new white 16GB iPhone 5 for her friend's birthday in July.

The phone retails at $948, but she thought she could get a better deal buying from overseas dealers.

She said: "I heard it is cheaper to buy from overseas because of the lower manpower costs to sell the phone."

Through the Internet, she came across posts in online forums by users wanting to sell phones. One caught her eye - an offer to sell the phone at $500, posted by a woman who was selling it through a company.

Ms Nursha was keen and she contacted the woman via e-mail.

In an e-mail exchange forwarded to The New Paper, the person asked her to pay by depositing $500 into a local bank account.

"Payment is to be made before delivery," the woman wrote.

Ms Nursha made the deposit on July 15.

But that evening, she was informed that there was a "mix-up" with her order - her package had apparently been sent to Hong Kong. Another package - containing nine smartphones worth $5,500 - was instead being sent to her.

The woman claimed via e-mail that the courier offers only a "one-way delivery service", meaning the mix-up could be rectified only by collecting the package and sending it back.

But the package would not reach Ms Nursha unless she paid an additional "assurance fee" of $3,000, the woman wrote.

Said Ms Nursha: "I felt trapped. I had already paid $500. If I didn't fork out the assurance fee, my money would go to waste."

Ms Nursha managed to bargain the assurance fee down to $1,000, but was still hesitant to pay. She relented only after she received a letter from the company promising to "refund" her once the "mixed-up" package was received. This letter was signed by the company's chief executive.

Ms Nursha paid the assurance fee. But the package never came, she claimed.

When she tried contacting the woman via WhatsApp, the woman blocked her number. That was when Ms Nursha realised she had been scammed.

She ended up giving her friend an organiser as a birthday present.

Said Ms Nursha: "I was convinced to foot the extra fee because the bank account was a local one, and because of the 'letters' I received promising a refund.

"Somehow, a local bank account made the seller seem more credible. But I don't know if her company is actually based in Singapore or if she herself is Singaporean."

The woman did not respond to our e-mails and WhatsApp messages requesting her side of the story. Her company is also not registered here, our checks with the Accounting and Corporate Regulatory Authority Singapore revealed.

But an online search showed that the woman had posted ads on several online forums like HardwareZone and SgForums.

Different names

Several other ads have also been posted using her telephone number, but under different names. Netizens have also set up at least three online forum discussions accusing the woman of scamming them.

Police said such scammers recruit "money mules" - holders of local bank accounts - to avoid detection. Their accounts would be used to transfer the proceeds of crime to the culprits' overseas accounts, a police spokesman said.

The mules might also be asked to buy prepaid SIM cards with local phone numbers to facilitate the scam, the spokesman added.

These local numbers are featured on the scammers online advertisements to add credibility to them.

The scammers would communicate with potential victims through online mobile messaging applications using these local numbers, the spokesman said.

Potential mules are usually contacted through social network sites.

The culprits would adopt various guises, like claiming to offer a business opportunity or seeking a romantic relationship, to target these mules. When trust is gained, the mules are convinced to assist in the culprits' purported businesses.

But by doing so, they may have committed the offence of dishonestly receiving stolen property.

If convicted, they could be jailed for five years, fined, or both.

How the scam works

1. Scammers post online advertisements selling smartphones, tablet PCs and laptops below market prices on popular websites.

2. Victims told to pay using interbank transfers to local bank accounts or remit payment via remittance agencies to overseas accounts.

3. To cheat victims into making further payments, the victims may receive e-mails notifying them that the items were:
- Held or wrongly delivered to another country
- Seized at Customs
- Mixed up with other items from a different order
- Too light, and did not meet the minimum order quantity

4. The scammers might then ask for an extra payment to:
- Retrieve the items
- Store them
- Serve a refundable guarantee fee

5 tips to safe online shopping

1. Do business with those you know and trust

Be sure you know what the company or who the person is and where they are physically located, even if a local number is used.

Businesses operating in cyberspace may be located in another part of the world. Resolving problems with someone unfamiliar may be more complicated in cross-border transactions. As part of this, visit secure websites. Look out for trust marks such as CaseTrust accreditation marks.

2. Research unknown companies

Ascertain the identity of the actual vendor and ensure there is a valid physical address on the website.

Ask the seller for its list of customers and make inquiries with the customers on the background and services provided.

Read online reviews and ratings on third-party websites given by other consumers.

Be aware that fraud artists can appear and disappear especially in cyberspace, so the lack of a complaint record does not mean it is legitimate.

3. Understand the offer

Do research to obtain the full information of the prices and extra charges (for example, postage fees), terms and conditions, exchange and refund policy of the product.

Ask for more information when required. A legitimate business would gladly provide it. Do not be lured by the discounts.

Save a copy of all the communication with the vendor in case it is needed in future.

4. Don't provide information that is not necessary to make the purchase

Never give your bank account numbers, credit card numbers and personal information to anyone you don't know or have not checked out.

5. Don't help others you meet online to make fund transfers

By doing so, you may be committing a crime, by aiding and abetting a criminal in receiving the proceeds from crime.

Anyone who assists others to move the proceeds from crime may be liable for criminal offences whether or not there was monetary benefit.


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