Easy Money Hard Lesson

When i was reading my local Newpapers, i was shocked to come across this article. And i was willingly to type the article out [not the whole article ,of course ] to inform the public. Hope that after reading what i typed out, you people will be more careful before plunging into any financial scheme/programme.

" Easy Money Hard Lesson "

by The Straits Time , a Singapore Press Holding publication

Consumers in Singapore were warned last week to be extremeely wary of unregulated get-rich-quick schemes.

The Monetary Authority of Singapore [MAS] issued the warning as a multi-level marketing [ MLM ] company, Sunshine Exmpire, hit the headlines over its controversial business practices.

//Background info of Sunshine Empire:

Barely 16 months into its operations in Singapore, Sunshine Empire has attracted 20,000members here who subscribe to its online shopping platform by forking out initial sums of up to S$12,000. In return, they are rewarded with potentially hefty cash rebates that are non-guaranteed.

Based on an initial sum of S$12,000, a member could make a gain of 60% , or S$7,200 , over time. THe business model is attractive because, unlike other MLM firms, Sunshine does not impost any requirements on its members to miantain a sales volume quota, so members can effectively enjoy their rebates as cash only.

Sunshine had been placed on alert watchlists issued by the authorities, both in Singapore and in Malaysia.

In response, Sunshine has said that it will work with the authorities in Singapore and Malaysia to remove its name from the alert list.///

The MAS list acts as an early warning alert to investors about unauthorised companies and individuals who might be providing financial services regulated by the MAS. The central bank periodically updates the list, which can be found at www.moneysense.gov.sg by clicking on "check our lists"

Here are some of the telltale signs often used in scams

~ Cold calls

      - an unsolicited call from a person selling investment products , usually over the telephone.

~ E-mail or bogus Internet websites

     - If you come across an offer for a financial product or service on the Internet or via E-mail, check whether the product is properly registered and whether those marketing the product are authorised to do so.

~ High-pressure sales tatics

   - seller often claims " once-in-a-lifetime opportunity" or "limited time-offer"

~ Promises of high returns

    - Sale representatives will claim to have insde or confidential information that will generate a windfall from investing. More often than not, these sale representatives are smooth talkers who give the impression that they are very knowledgeable about investments

~ "Virtual" offices

   - Most operators of financial scams work out of call centres or "boiler rooms" based overseas. They use virtual officce to give a false impression that the company is located within a particular jurisdication.

*P.S. There is as online version of the local newpapers, but I am not a paid member. So i can't provide a direct URL link to the online article. Sorry about that *