PUBLISHED ONDecember 27, 2023 10:06 AMByKhoo Yi-HangHe had earned a quick buck online - but the buck never reached him.
A man surnamed Lin (pseudonym) contacted the police after his earnings on an e-commerce platform was withheld from him, requiring him to pay taxes to withdraw the amount, Shin Min Daily News reported on Wednesday (Dec 27).
Lin, 46, got into e-commerce through a TikTok user who shared how to make money via online platforms and mentioned that he was looking for a partner.
"I was interested in trying to start a business, so I contacted him. He told me that there are no handling fees if I wanted to register as a seller on the platform, and also told me that he would teach me how to use the e-commerce platform," Lin told Shin Min.
He registered himself on the e-commerce platform "Targetmall" on Dec 16, intending to sell skincare products.
Lin reportedly spent $19,000 on buying approximately 600 products, all of which are "well-known brands".
While he was selling the goods, however, he was hit with multiple notifications from the platform informing him that he had infringed regulations, requiring him to make a deposit of $12,000 to continue.
"I just wanted to change to selling a different skincare brand, but they asked me to pay a deposit instead," he told Shin Min.
Lin still managed to make $8,000 from the platform between Dec 16 and 25. However, when he tried to withdraw his earnings, he was instructed to pay $4,000 in taxes.
"The platform's customer service told me this was tax I needed to pay, but the tax had to be paid by me instead of through the platform.
"I felt that this was problematic, so I called the police," Lin explained.
Earnings included, Lin said that he had about $40,000 locked behind the platform.
A Targetmall customer service representative who spoke to a Shin Min reporter said that the tax was standard procedure for the platform and failing to pay taxes would result in tax evasion.
"Every seller should know that they need to pay taxes before they're allowed to withdraw money from their account," the representative told Shin Min.
Responding to queries by AsiaOne, the police confirmed they received a report and that investigations are ongoing.
According to the mid-year scams and cybercrime statistics 2023 report by the police, job scams and e-commerce scams are among the top five most common scams in the first half of 2023.
And since January 2023, at least 6,600 victims have fallen victim to job scams, resulting in losses totaling over $96.8 million.
In an advisory on fake online job scams, the police shared that members of the public should avoid dubious job offers that offer lucrative returns for minimal effort and to not send money to anyone that you do not personally know.
khooyihang@asiaone.com