The start of Internet censorship?
There are many ways to skin a cat. So are ways to start censoring the Internet.
That's the key message I received from Screenshots friends and readers who are concerned over the joint action by several authorities -- Securities Commission (SC), Bank Negara, the Malaysian Communications Multimedia Commission (MCMC) and CyberSecurity Malaysia -- in closing down websites in the name of nabbing fraudulent investment schemes.
They are asking if, by blocking access to six illegal investment websites and raiding the offices of an Internet firm in the Klang Valley, the authorities have started a crackdown on cyber scams.
If yes, what is going to prevent the authorities from blocking access to politically critical websites, or even going to the extent of censoring foreign news in the near future?
Already, out-goiing UK prime minister Tony Blair, in a farewell lecture on public life yesterday, has called for regulation of Internet-based publications, which well include blogs.
I felt so compelled that I have upload a similar entry on my CNet Asia blog, Lemak Lemang.
Web-lock
In a press statement released June 12, the SC said it has collaborated with MCMC to block access to six websites, namely www.abbfund.com or www.abfund.us, www.cfdventure.com, www.swedenfund.com, www.uebond.com, www.esuissefund.com or www.efmf.com.pa and www.ecashfinance.com.
More scam websites will be blocked in the next few months, the SC said. It has identified some 60 websites that are involved in illegal cyber investments.
The alleged scam, known as SwissCash or Swiss Mutual Fund, claimed that investors’ funds were channelled to business activities ranging from oil exploration to shipping and agriculture in the Caribbean.
Investors were required to pay a registration fee of US$30 (RM103.50) to join the scheme, which allegedly offered huge returns for a minimum investment of US$100 .
Meanwhile, Bank Negara and the SC have begun joint operations with the police in tracking down such illegal e-investment activities.
At the same time, the Inspector-General of Police, Musa Hassan, has asked for new laws to be introduced to prosecute Internet scam operators.
He said, the present set of laws only provide for the police to take action under the Commercial Crimes Investigation Department (JSJK) on cases of cheating that involves sale and purchase and rening of land, welfare aids, lottery, Ah Long (loan-sharks), scratch-and-win schemes, bomoh services, SMS and auctioning of customs confiscated goods.
"Investment through the Internet involving the illegal collection of deposits comes under the jurisdiction of Bank Negara unless it can be classified as a cheating case," the IGP was quoted as saying in Utusan Malaysia.
The activities of the Internet scam operators are currently being investigated under sub-section 25 (1)of the Banking and Financial Institutions Act 1989 (Bafia) and Akta Pencegahan Pengubahan Wang Haram dan Pencegahan Pembiayaan Keganasan 2001.
The SC also stated that an illegal deposit-taking operator can be jailed up to 10 years or fined RM10mil, or both.
The fear
Concerned with the implications of the precedent of blocking access to the websites, Screenshots reader P. Nair wrote:
Personally, I'm happy to see that the SC is paying attention to this matter. I've personally contacted the SC about these websites in the past and have suggested to them to take some actions to ward these investors from being scammed.
However, blocking these websites is actually censorship of the internet and as I'm sure you know, the MSC Bill of Guarantees ensures that the internet cannot be censored.
My hope is that this issue can be brought into light as there are other ways to tackle scam sites. One such way would be to redirect a user to a page that warns the user regarding the nature of the website and then give the user the option to continue or to stop.In my point of view, the MCMC or the ISP's might take this lead and first start playing the 'Morality card' to block access to pornographic sites. Then bolstered by mass public support, they may be bold enough to play some 'National Harmony card' to then start blocking access to politically critical websites and might even go to the extent of censoring foreign news.
Nair's views were echoed by reader Irina: "I am against these illegal online schemes but doesn't this violates the MSC Bill of Guarantees?".
On the other hand, several bloggers SMS-ed and emailed Screenshots to express similar concerns. One had pointed to an blog entry by TV Smith:
Some greedy sods got burned by some dubious online investment schemes and who do they blame? The Internet, of course. How different is this from the guy who was approached by a stranger on the street flashing a 'Rolex' under his jacket? The buyer thinks he can earn a fast buck by re-selling it.
Outside the Internet, there are a thousand more cepat kaya schemes with similar modus operandi floating around. Heck, even a lawyer was sending loads of money to Nigerian scammers who used snail mail. But never blame it on one's own greed and stupidity, blame it on the Internet.
The general consensus is that, while the authorities should come down hard on the scam operators, they should spare the Internet.
Instead of blocking access to the websites, the authorities should augment their raids and prosecution with sustained campaign to educate the gullible public on the perils of such Internet investment scheme.
How about this LOFSA website?
While Bank Negara is seen taking steps to block access to the scam websites, a Screenshots reader revisited an old entry in this blog, dated July 6, 2006, and questioned why the central bank has not cleaned up its act within its own agency, the Labuan Offshore Financial Services Authority (LOFSA)?
On last check, LOFSA still hosts information about a Melbourne-based investment bank, now defunct and whose principal, Malaysian Adrian Ong Chee Beng, has been caught and prosecuted by the Australian authority.
Adrian Ong, dubbed the AU$6 billion Man by the Australian media, was found related to investment bank, CIBT, which has been wound-up for severe irregularities. However, why is it still listed on the LOFSA official website when its parent company in Melbourne was busted and operating permit withdrawn in 2004?
Ong's designation reads 'president director'. his company, Commercial IBT Labuan Branch (CIBT), was still listed on LOFSA's website at the time I blogged this.
Comments
"...come down hard on the scam operators, they should spare the Internet."
I support your statement 100%. Any other action would be like going ballistics about women's clothes instead of condemning rapists and sexual harrassers, tracking down whistle-blowers instead of corrupt officials... Seems we have to keep repeating ourselves hoping they get their priorities right.
Posted by: LC Teh![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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June 14, 2007 07:55 AM
I will be the first to be counted to protest against Internet censorship but there is clearly a distinction here.
These schemes are called (affectionately by those who designed them) HYIP, or High Yield Investment Programs.
Methods wise, they are no different from a Ponzi scheme. Early "investors" are "rewarded" by "gains" which in turn spur more "investors" to plough money into non-existent projects. The invested funds go straight into the pockets of the people running the scheme. When it gets impossible to fulfill their "$100 in 10 days with just $1 investment" promise, they close shop and move on.
I see these sites as nothing more than phishing sites as they often look professionally done. They also use royalty-free "mat salleh" photos and somehow, this attracts our local investors to think that they are foreign owned. The tell tale sign is when you click on "Contact Us" and you couldn't find a registered physical address.
I would say "Caveat emptor" to everyone who uses the Internet...but as P.T. Barnum also famously proclaimed, there's one born every minute.
Posted by: Sick Dog![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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June 14, 2007 08:05 AM
This shows that there are gullible Malaysians who would not discern and choose the vast information and schemes available in the Internet.
It is worrying that this could be the start of censureship in Msia which against the BOG in the MSC. But what is there to stop these schemes from reappearing under different domain names/Websites? How long can the chase to Web-block last?
Posted by: Daily Nibbler![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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June 14, 2007 09:30 AM
I agree with Sick Dog here in fact i'm ashamed to admit that i was seduced by these sites some of which are professionally done. I'd like to think that with my level of education that i'd be more savvy investor than most when i invested in these programmes. Some of it even had registered offices and everything checked out ok when my due diligence was done.
You can blame greed but it is easy to believe the legitimacy of the site due to the slick web design. Imagine the ordinary person who has limited web exposure when they go to this website. I'd imagine the main 'investor' in these programme are the same in the Pak Man Telo scams a decade back?
For those who see and insidious hand in these case, i say freedom comes with a price..
Posted by: eksk![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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June 14, 2007 10:05 AM
Jeff ,
By blocking the Malaysian internet user from accessing that listed page was a brainless decision. Better they block all the porno site rather than doing that. There are many ways people still can access to that page via web proxy and VPN connection.
JEFF OOI says: Precisely the point. That's why, ppls are wondering if this is the precursor of funny things to come?
Posted by: Akunyer![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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June 14, 2007 10:22 AM
Jeff, although it's scary to think that the authority can take internet censorship to include blogging sites, but i think what they are doing to clam down on the internet investment scams are correct. There are just too many gullible Malaysian out there who are easily deceived by such scams which promises high returns within short timeframe.
There were numerous occasions that I was approched even by close friends and family members to invest in such schemes, but they have no idea how these schemes works or make money. The promise was to invest RM 238 and you will get a return of RM 100k within 1 year!! Who on earth with the right frame of mind will think this will happen? They still seems to think that miracle will happen somehow and its a small sum to pay - just like buying a loterry.
But if you have 10,000 people investing RM 238, imaging how much the culprits can reap!. Anyway, what the authority is to save guard everyone who can't think with their brains.
Posted by: Southface![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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June 14, 2007 11:49 AM
Agree with you, Jeff, on the expectations on future scope of censorship.
But I have to say the current censorship on these investment scams is a good move; too many just fell for it. Not all are knowledgeable or smart. This call for drastic measures is a right one.
It's nice that you bring this up so that you can quote it if the time comes when you are right.
Btw, can you put the Diggs at the bottom, some people may perceive you are trying to get famous... but which you already were!
Posted by: balow![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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June 14, 2007 04:07 PM
From all domains you listed in your post, I can only access www.swedenfund.com and www.efmf.com.pa through my ISP in Japan. FYI, I'm hooked to a 100 MB/s (upstream & downstream) Home Family fiber-optic line using Japan's largest ISP, NT&T.
This means that world's 2nd largest economy is also blocking access to scam websites. I should say that 39th largest economy Malaysia is too late in blocking those sites.
Just my 2 cents for my countrymen who talks much and do less.
Posted by: Shuhaimi![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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June 14, 2007 09:31 PM