GAMBLING IS ILLEGAL

CRIMINAL lawyer Adrian Wee, from Characterist LLC, said that gambling is illegal in Singapore, even if it is done online.

'Even if the gambling site is not in Singapore, it is not legal to access such sites here. As long as it occurs within Singapore borders, doing it online makes no difference,' said Mr Wee.

OVER-SELLING?

Mr Wee said it may be considered cheating if the person who is promising you returns on your money has no intention of paying it later.

He also cautioned that if a scheme is found to be an investment scheme, it may well be in violation of the provisions of the Securities and Futures Act which regulates the conduct of investment schemes and financial investments.

IS IT A PYRAMID SCHEME?

Mr Scott Mitchell, 34, a financial planner from the United Kingdom with 11 years of experience in the financial services industry, said that a scheme which has people recruiting others to join and promises incredible returns 'sounds like pyramid selling'.

'The only people who can make money in a pyramid scheme are normally the people who start and are selling the scheme,' said Mr Mitchell.

'On the lifestyle aspect, couldn't you just use the $12,000 to buy a really nice holiday anyway?'

Mr Mitchell also pointed out that websites selling lifestyle packages may have pretty pictures, but one should look out for information such as who runs it, how it works, how much it costs and who regulates it.

'Even lifestyle and travel companies are regulated, especially in the UK,' he said.

NOT EASY TO SEEK REDRESS

Mr Seah Seng Choon, executive director of the Consumers Association of Singapore, said that consumers who transact with companies registered overseas will usually find it difficult to seek redress if there is a dispute.

He added that the process to seek redress could also be costly and tedious and subject to the law of the foreign countries which Singaporean consumers may not be familiar with.

Said Mr Seah: 'Consumers need to exercise caution when transacting with such companies.'

This article was first published in The New Paper.