Detectives in the Royal Cayman Islands Police Service Financial Crimes Unit are concerned about the number of scams being targeted at residents of the Cayman Islands.
Officers say a new scam is reported to the unit almost weekly. Some of the most common scams include:
Request to use a bank account to deposit a large sum of money: The victim is asked to allow an account to be used to deposit a large sum of money. Initial contact is generally made by mass email and the victim is asked to keep all details of the transaction secret.
The money offered is often from a secret account, unexpected inheritance, over-paid government contract or ‘forgotten money’ left in an African account.
There are often fees or taxes requested to be paid by the victim before the money is deposited. Once these fees are paid the money will never appear.
Business opportunity: A business may receive communication from someone proposing to be a public official offering an opportunity to be involved in a large commercial opportunity.
The offer will involve very large financial returns and will require the victim to finance a portion of the contract up front. The cash will be requested via money transfer agencies such as Western Union and will be for tasks such as legal fees, registration costs and project fees.
Fraudulent cheque/credit card: This scam targets small businesses and individuals and sees victims receive cheques that are not signed or counter signed but are dated and made payable to the recipient.
These are fake cheques. The sender may also request that the cash be used to pay for goods to be sent to them. Initially the cheque may clear, reassuring the victim that the money is available.
However, once the goods have been sent the cheque will be identified as fraudulent and the victim ends up bearing the entire cost of goods and shipping.
The credit card fraud involves businesses being contacted from overseas companies wishing to purchase goods or services. The orders are often higher than those normally dealt with and could be viewed as a windfall for the victim business.
These often take shape in the form of accommodation providers being asked to facilitate business people attending a conference or seminar. A card is used to pay the bill and soon afterwards the fraudster will cancel the booking and request that the refund be sent in cash via a money transfer agency.
Charity scam: The charity scam differs from the other scams as the victims are not seeking anything in return. The fraudsters seek out people on the internet and request regular donations to a charitable cause. The fraudster will often present themselves as ‘Reverends’ or ‘Ministers’ who operate in orphanages or churches that are desperately seeking funds.
There is no way to identify whether the outlet exists or whether the person seeking the funds is who they say they are.
Purchasing puppies: Fraudsters offer puppies for sale over the internet or in local press, often using a yahoo or similar email account as the only point of contact. The fraudster will request funds to have the puppy shipped or delivered to your door for an extra fee. End result; once they have your money, none of this will materialise.
Anyone who is approached in any of these ways is asked ignore the communication and delete or destroy all correspondence. Anyone who receives fraudulent cheques should contact the FCU on 949-8797. Attempting to cash counterfeit cheques is an offence that could lead to a 10-year prison sentence. Five people are currently assisting the FCU in a recent cheque scam investigation.
Detective Sergeant Michael Montague says if a deal seems too good to be true it probably isn’t. ‘People do not get money for doing nothing and our advice is never to send money in response to any unsolicited communication. Never give out banking or credit card details.’
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