Police warn about ‘cash flipping’ scam

The Royal Cayman Islands Police Service is notifying the public about a ‘Cash Flipping’ scam pervading Cayman. A group of individuals appear to be using social network sites to advertise a fraudulent means of investment that yields profits of up 2,000 percent of the original investment.

The ‘Cash Flipping’ culprits appear to be targeting victims via social network profiles on Instagram and other sites, and then they send direct messages from profiles purporting to be from U.S.-based investment companies that promise sizable and immediate profits for small up-front investments.

The victims of the scam have been promised a return of 10 or 20 times their investment amount. The victims are then put in touch with user profiles purporting to be Caymanian investors that can vouch for the credibility of the investment. But many of those are fake accounts with hijacked photographs.

Victims have been encouraged to send money via Moneygram and Western Union to locations like Jamaica and other offshore jurisdictions. Once the money has been sent, victims are told they need to send a further outlay of as much as CI$350 or $500 for administrative fees and other spurious charges.

After further deposits, victims have found they are blocked from being able to message or otherwise contact culprits on the social network site. No return on their investment materializes.

Two formal complaints have been sent to the Financial Crime Unit of the RCIPS, and a number of people have shown up at Moneygram and Western Union windows with questions about the scam’s veracity.

The RCIPS FCU strongly cautions all members of the public to beware of any solicitations via any social media to invest in stocks or other assets.

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