Consumer Alerts - August 2007:

Did you win a lottery held in Hong Kong? Beware… (Published in C@sebites Issue 107, 16 August 2007)

“Congratulations! You have won a lottery in Hong Kong…”

Such an opening line in a phone conversation might get your pulse racing. But beware, if you’re not careful, you may end up with a hole in your pocket instead of an easy windfall.

Recently, our CASE hotline has been buzzing with calls from the public, recounting their experiences of “winning the lottery”. Here are some likely scenarios of what happens after you have been notified of your lottery win:

• You are asked to divulge your NRIC and bank account number to verify your identity so that you can claim the prize money.

• You are asked to wire or transfer money to a designated overseas account. You are told that the purpose of the money is to “pay taxes” or for “processing fees”. In other words, you are told to pay an advanced fee in order to receiving your winnings.

But, remember this, you cannot win a lottery or sweepstake if you do not have a lottery or sweepstake ticket! You would need the lottery ticket to claim the prize. Neither would an authentic lottery or sweepstake require advanced payment in such a manner. For more information, click here

Consumers can directly approach manufacturer regarding warranty of product (Published in C@sebites Issue 108, 31 August 2007)

A reader wrote into the Straits Times Online Forum (Calling brunobear", ST Forum, Aug 16) about failure to collect a product through online purchase, after having the payment deducted from her account and not being able to contact the company through any means.

Regarding this issue, CASE has replied a forum letter, advising the consumer:

• Approach the Accounting & Corporate Regulatory Authority (ACRA) website: www.acra.gov.sg to check if the company is a Singapore-registered business
• If the company is a registered business and the status of the company is ‘live’, the consumer can purchase a copy of the company’s business profile from ACRA and file a claim against the company with the Small Claims Tribunals. If the company is a non-registered business, consumers should notify the relevant authorities such as ACRA so that the appropriate action can be taken

CASE wishes to remind consumers to be careful when making online transactions. Consumers are advised to deal with only registered businesses in order to protect themselves. They can find out if the business is registered by searching the online business directory on the ACRA website. Also, consumers should make certain that the transactions are made on a secured site. They can look out for the TrustSG logo or CaseTrust webfront logo for further reassurance.

See here for our official response