ONLINE cheating scams have been kept in check in the last three years - thanks to Singapore's robust legal system, close cooperation between the police and financial institutions, and public education.

Home Affairs Minister Wong Kan Seng said the number of online cheating cases over the past three years has remained about the same: 61 cases in 2005, 61 in 2006 and 57 in 2007.

In his written response to a question from Sembawang GRC MP Ellen Lee Geck Hoon on Monday, he said the most common trick from scammers is putting a false advertisement of a product or service on the Internet to induce victims to place orders online and make electronic payment.

The victim only realises that he has been cheated 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.

Mr Wong said the number of cases solved in 2005, 2006 and 2007 was 29, 28 and 12 respectively, or about 40 per cent of the reported cases. The number of culprits arrested over the three was 22, 9 and 15 respectively.

Three thrusts to combat online cheating
On the three key thrusts to combat online cheating, the minister said firstly, the 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 organisations 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, said Mr Wong.

Thirdly, Singapore has put in place a robust legal framework to punish online scammers and deter other like-minded persons.

Public should remain vigilant
Online scams constitute cheating offences and are punishable under the Penal Code with imprisonment terms of up to three or seven 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).

Mr Wong urged the public to remain vigilant in tackling the online scourge.

'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,' he said.

'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.'