Consumer Alerts - May 2007:

Giving away your CPF password for “easy cash”? Beware (Published in C@sebites Issue 102, 17 May 2007)

The New Paper (“Can Pay Fast; Want a loan? Just give me your CPF password and I…”, May 10) reported on this little scheme: some agents have been advertising in the papers on a cashback scheme where you let them have your CPF password, so they can invest your money into unit trusts or investment linked policies. The agent gets a commission from his company and you take a cut of the commission.

A good deal? Not quite. #1 Do remember that all investments come with risks and profit-eager agents may not fully inform you of the risks involved. They may indulge in churning (the practice of buying and selling investments many times over) without regard for losses in the attempt to earn as much commission as possible. #2 Gains from investing CPF monies should actually go back to your account and not as direct cash. #3 Your SingPass is supposed to be confidential and you should be wary of divulging such information to strangers.