SCAM artists posing as charity fund-raisers are becoming more of a
menace on the streets, and they are being confused with direct
sellers.
Collectors brazenly claim to be genuine volunteers from local
charities, while others have even started going door to door, often
staying one step ahead of the law.
Organisations like the Yellow Ribbon Project, the Singapore Red
Cross, the Society for the Physically Disabled (SPD), the Diabetic
Society of Singapore, St Luke's ElderCare and Willing Hearts have
all reported that their names were abused by "fund-raisers" this
year.
Willing Hearts gets one to two calls a day about individuals
selling souvenirs who claim to be from the charity.
The SPD received six reports this year from the public about the
same problem.
In some cases, collections of old clothes and electrical appliances
and even flag days have been conducted behind SPD's back.
"Everybody's collecting money now, it's ridiculous," said Willing
Hearts founder Tony Tay.
These "volunteers" prowl outside popular malls such as Tampines
Mall, Raffles City and Plaza Singapura flogging key chains, mobile
phone accessories, ice-cream, greeting cards and stationery.
They have also started going door to door in areas such as Bukit
Timah and Holland Village.
Reports emerged as early as 1994 that illegal peddlers were abusing
the names of charities. Now the lines between charities, scammers
and direct sellers have become increasingly blurred.
Willing Hearts' Mr Tay said a direct-selling firm recently
registered itself with the same name as his charity and has been
selling souvenir items for profit.
The Accounting and Corporate Regulatory Authority shows that this
firm conducts "door-to-door sales to help recruit low income (sic)
and ex-convicts to earn". A post on the firm's Facebook page states
that it is a "profit-making company" that is "not involved in any
donation drive".
But Mr Tay says that he is concerned. "They say that they sell for
profit but people still think that Willing Hearts is us, the
charity."
The company could not be reached for comment.
Recently, there have also been young people peddling beauty
treatment vouchers in public.
When some of these young people approached The Straits Times at
Jurong East MRT in July, they claimed they were selling the
vouchers "to help the children" of a particular group.
They also claimed that 40 per cent of the proceeds would go to this
beneficiary. A check by The Straits Times revealed this beneficiary
is a registered society, but not a registered charity.
The young people did not have a fund-raising permit, but documents
they carried stated they were employed by another company. Their
documents also stated that they were doing direct selling, but
their sales were not a donation drive or a fund-raising
activity.
Both the company and the beneficiary could not be reached for
comment. The office of the Commissioner of Charities is
investigating the matter.
Lawyer Shashi Nathan said any untruth or misrepresentation that
deceives a buyer is tantamount to cheating: "If they give the
impression that it's for charity, even if they don't mention the
word, and it's not, it could amount to a cheating charge."
The law states that anyone soliciting funds for charity in public
requires a licence from either the police or the National Council
of Social Service.
Those without a valid licence can face a maximum fine of $5,000, a
maximum jail term of two years, or both.
In 2011, only three people were arrested for illegally soliciting
funds in public. There were five last year, and in the first six
months of this year, seven were arrested.
Enforcement is tricky, said Mr Tay. "There are too many of them and
they know the loopholes. We can only spread the word but it can't
go around so fast. A lot of people are still unaware."
Charities and legitimate direct sellers are worried that their
reputations are taking a hit.
A spokesman for the National Council of Social Service said that
scam fund-raising activities "compromise the credibility of
voluntary welfare organisations".
Mr Leo Boon Wang, chairman of the Direct Selling Association of
Singapore, told The Straits Times: "Some may still be confused and
mistake charity scams for direct selling, and this puts a dampener
on the reputation of the industry."
Direct sellers such as former convict Leslie Chua, 26, said he
relies on the key chains he sells because he cannot find another
job. "Normally I can sell about 15 key chains a day. Now I sell
only two," he added. "Everyone thinks we're cons."
Fund-raiser, direct seller or scammer?
Charity fund-raiser
Direct seller
Scammer
How to verify the authenticity of a charity fund-raising
licence
Police or NCSS licence
SMS by texting "FR<space><licence/certificate number of
organisation name>" to 79777. The Ministry of Culture, Community
and Youth Charities Unit will reply whether the licence number is
valid.
Smartphone users can also scan the QR code on the permit, which
will take them to an online search facility of fund-raising permits
approved by NCSS.
