SINGAPORE: In 2022, a man looking for ways to earn fast cash came across a modem that could receive SMS messages sent to multiple SIM cards.
Alvin Kok Jun Keat then devised a way to sell chat messaging accounts to customers who wanted to use them for nefarious purposes.
Across seven months, Kok’s syndicate generated close to S$890,000 (US$697,000) in sales profits. SIM cards seized from the syndicate were linked to thousands of police reports on scams involving a total reported loss of more than S$51 million.
Details of how the syndicate operated were revealed in a judgment published on Wednesday (Sep 17) regarding Kok’s co-accused Tan Shay Howe.
Tan, 47, was sentenced to three-and-a-half years’ and two weeks’ jail as well as a fine of S$11,000 on Aug 12 this year by District Judge Crystal Goh.
Tan had pleaded guilty to three charges in the State Courts, one count for being a member of the syndicate and two for engaging in a conspiracy to obtain benefits from criminal conduct.
Two charges of a similar nature were considered by the judge in the sentencing.
The prosecution appealed the sentence imposed by Judge Goh, resulting in the present judgment.
Setting out the facts of the case, Judge Goh said that Tan was a mechanic at Da Sheng Motoring, a car workshop run by his son.
Six other co-accused, including Kok, were named in the judgment. Tan and Kok were acquaintances.
After chancing upon the SMS modem, Kok found that it could receive SMS messages sent to multiple pre-registered SIM cards inserted into the device, and that the messages could be accessed through a connected computer.
He devised a plan to set up anonymous accounts on WhatsApp and WeChat using pre-registered SIM cards, and activating these accounts through one-time passwords (OTPs) received via SMS through the modem.
Customers who bought these accounts could hide their identities when using them for criminal purposes, such as carrying out scams.
Kok imported the SMS modem from China and began sourcing pre-registered SIM cards through Telegram for his business.
He charged US$30 for the 30-day use of a WhatsApp account and US$10 for a WeChat account.
Customers made payments to a cryptocurrency wallet, which Kok would then encash.
He engaged an unidentified person to advertise his services on Telegram.
When a customer approached him with a request for an account, Kok would provide the customer with a prepaid mobile number from his supply of prepaid SIM cards.
The customer would then create an anonymous account with a messaging service, and generate an OTP received by the prepaid SIM card in the modem. Kok would convey this OTP to the customer.
He also offered a top-up service to those who wanted to extend the usage of the account beyond the 30-day period for a fee of US$10.
Over time, the syndicate used software to provide customers with concurrent links to access the OTPs, so that members of the syndicate did not have to provide them manually.
In December 2022, Kok expanded the business and obtained more modems. Tan recruited other people to work in the syndicate, and later contributed S$25,000 to the business.
Between January and February 2024, Tan agreed to take over the business from Kok, as Kok did not get along with another member. He agreed to pay Kok S$10,000 a month to compensate him for the operational costs that the latter incurred to start the business.
Tan also made the suggestion to move the business to an empty office space above Da Sheng Motoring in March 2024. He charged S$3,000 a month for the use of the space.
On May 29, 2024, the Anti-Scam Command of the Singapore Police Force conducted a raid at Da Sheng Motoring and seized 24,000 SIM cards, 27 SMS modem devices and seven mobile phones, as well as other equipment.
Between November 2023 and May 2024, the syndicate generated close to S$887,477 in sales profits.
Between January and May 2024, the seized SIM cards were linked to a total of 2,393 police reports on a variety of scams involving a total reported loss of close to S$51,088,067.
The authorities found that customers who bought the accounts were mostly from countries such as Malaysia, Myanmar and Cambodia, and based overseas.
Tan made around S$36,000 from the syndicate’s activities.
SENTENCING ISSUES
Judge Goh noted that the prosecution asked for a deterrent sentence and highlighted Tan’s role as a financier of an “elaborate and highly successful syndicate” that profited from the sale of numerous chat accounts to customers who were mostly based overseas.
The prosecution also referred to the illegal purpose of the syndicate and its organisation and scale involving seven known members in specific roles as factors that enhanced the harm of the offence. It sought five years’ jail for Tan.
The defence argued for 29-and-a-half to 33 months’ imprisonment. It said that Tan’s role was confined to being an investor and a facilitator of payments to Kok, and leasing office space to the syndicate.
It added that Kok was not the one who had carried out scams that caused the losses.
Judge Goh took the view that general deterrence was a paramount sentencing consideration. However, she felt that Tan’s role was more limited than what the prosecution had argued.
“I was of the view that someone engaged in daily operations would typically have more active involvement, as well as greater influence and direct control over the manner in which the offences were committed,” she said.
“This was in contrast to a ‘financier’ or ‘investor’ like the accused, whose role was more passive and who was not the primary force driving the criminal conduct.”
She agreed with the defence that Tan’s role was relatively limited.
“As the defence highlighted, even after the accused invested (in) the business, there was no evidence of the accused directing or having control over its operations, save for the areas … which were limited to logistical and administrative functions,” Judge Goh said.
She said that the sentence she imposed was “proportionate to and reflective of (Tan’s) overall criminality, having regard to his role in the offences”.
