Rules Needed To Stop Online Donation Scams Says Lawyer

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A lawyer says there are regulations on street collections but none on online donations and crowdfunding.PETALING JAYA: A lawyer has called for legislation to cover the online raising of funds, to prevent scammers from cashing in on the goodwill of donors
A Srimurugan said existing laws only apply to street collections and not to activities such as donations and crowdfunding
“Under the House to House and Street Collections Act 1947, a person who solicits donations on the streets, public places or places of business must obtain a licence from the police
“A person who contravenes the provision is liable to a fine not exceeding RM5,000, imprisonment for up to two years or both,” he told FMT
However, online donations do not require a licence or permission letters, he said
Recently, police arrested a postman whose tale of not getting his Aidilfitri bonus caught the attention of social media users
He was later detained for making an illegal collection through social media for a “fellow postman”
Srimurugan said while authorities and the Malaysian Communications and Multimedia Commission could still act against such scammers under the Penal Code for cheating, specific regulations should be formulated
“Without a law to regulate online donations, there is no transparency on where the money goes and whether it is received by the intended recipient,” he said
He suggested that receipts be provided for all online donations “to prevent fraud and to prove accountability by individuals soliciting such funds”
He said the receipts could also be used for tax deduction purposes
“There is also a need for a person in charge to manage the donations and account for how they are used,” he said
Srimurugan also cautioned social media users not to fall prey to scammers who use sob stories to win the sympathy of donors. - FMT

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