Consumer Alerts

There is a wide range of products and schemes, both in Singapore and globally, that claim to offer consumers potential profits. Some of these are offered and traded in markets or by firms that are regulated. But, there are others that are not regulated by financial sector regulators like MAS. 

Deal with regulated persons if you are seeking financial services

Consumers seeking financial services are strongly encouraged to deal only with persons that are regulated by MAS. MAS' regulatory regime aims at safeguarding the interests of consumers by ensuring that only competent and professional persons may provide financial services. The laws administered by MAS also require disclosure of information on investment products being recommended to consumers.

Click here to find out what you can do to check if the party you intend to deal with is authorised by MAS.  

Pitfalls of dealing with unregulated entities or schemes

If a consumer chooses to participate in schemes that are not regulated by MAS, he will not have the protection afforded under the regulatory framework administered by MAS, particularly if the operators are based overseas. If he has a complaint against an unregulated entity, he will also not be able to approach the Financial Industry Disputes Resolution Centre (FIDReC) for assistance. And if an operator is based overseas, it could be even harder for the consumer to pursue the matter.

It is very important that consumers check the legitimacy of such schemes, rather than just focusing on the offered returns, particularly where the scheme promises returns are much higher than the returns offered by established investment schemes/products regulated by MAS. If something is too good to be true, it probably is.

When consumers put their money into such unregulated schemes, they do so at their own risk.

Read more in the consumer alerts below:

• Attracted to schemes that offer high returns? Tempted to learn how to earn profits within a short time? Think again! 
• Pitfalls of dealing with unregulated entities

Common unregulated schemes

Below are weblinks to information on some unregulated schemes and key risks consumers should watch for. This list is not exhaustive. It is updated from time to time, based on information received by MAS.

Investing in tree and crop plots

See the wood for the trees when investing overseas

Received an offer to invest in trees, crop plots or plantations? Consider carefully before deciding whether to place your money in these schemes. Click here to read an article by the United Kingdom Financial Services Authority.

Forex Trading classes / software

Enrichment classes: Gain a new skill, enjoy new riches? Think again!

These days, newspapers carry ads for forex trading seminars regularly, often daily. The success stories are catchy: the chance to retire early, earn extra income or make some money after years as a home-maker are appealing. But media reports have carried mixed views about these seminars. Some consumers have also lost money on top of paying out hefty course fees. Click here to learn more about what forex trading is about and key things to think about before parting with your money.

Look before you leap – pitfalls of dealing with unregulated entities

We sometimes come across seminars or schemes that claim to offer high returns, at low risks. These look very attractive. But what are the risks? Click here to listen to a Mandarin radio programme, aired on Capital 95.8 FM on 17 May 2012.

Gold “buy-back” offers

Gold buy-back schemes: Before you rush in 

Click here to read the article

Source: The Sunday Times © Singapore Press Holdings Limited. Reproduced with permission

Land banking

Land banking – Look before you leap

Received an offer to invest in undeveloped land in a foreign country, with the potential to double, treble or multiply your money in a few years? Attractive as this may sound, consider carefully before you part with your money. Even if you are presented with financial reports showing the possibility of consistent and high returns for the investment, or testimonials of how other investors have benefited from land banking, take a step back and consider what the risks are. This is critical. Click here to find out more.

Avoid falling victim to land banking schemes

Click here to watch a video by the United Kingdom Financial Services Authority, March 2012 

Other Consumer Alerts

Phishing and Internet safety

Phishing - How to Avoid Becoming a Victim

Have you received spoofed emails claim to be from your bank, credit card company or service provider? Read about phishing, a technique used by fraudsters to obtain sensitive personal information such as your account details, PIN, credit card number, user ID or password through the Internet, and how you can protect yourself from becoming a victim.

Understanding Two-Factor Authentication

Two-Factor Authentication (2FA) was implemented to improve the security of internet banking. Click here to read more on 2FA and things to take note of when performing online transactions.

Making SENSE of Internet Banking Security

Increasingly, more and people are using the Internet banking to conduct financial transactions. Click here to find out more about simple steps you can take to protect yourself when conducting such transactions.

Scams and bogus investment opportunities

Received an offer for a windfall? Beware of scams!

Be careful if you receive unsolicited letters or emails offering deals that seem to be too good to be true, appear to come from well-known institutions, request for confidential information, and/or give instructions to transfer funds to a third party or account. Such mails are typically scams intended to defraud. Click here to get some tips on how you can protect yourself from scams

Protect yourself against bogus investment opportunities

Cold calls, emails or bogus internet websites are common techniques used by unregulated persons to solicit business for bogus investments. Click here for tips provided by MoneySENSE on how you can protect yourself from falling prey to such schemes.

Paying the price for your overseas inheritance or lottery winnings

Some of you may have chance upon emails, calls or letters informing you of various scenarios where you are about to receive a huge sum of money. Click here to get some tips on how you can protect yourself from scams.

Get fast cash, high returns with CPF savings!

Be careful! Do not invest based on promises of quick and attractive returns alone. You are advised to ignore advertisements which tout conversion of CPF into cash. You should invest prudently and consider the suitability of the products according to your own risk appetite and investment objectives. Investments should not be made based on promotional gifts and rebates. Click here to get some tips before investing your CPF savings.