Cayman Islands police warn of fraudulent investment company

The police are investigating reports of a fraudulent investment company purportedly based in the Cayman Islands and has warned potential investors into any companies in Cayman to carry out proper research and due diligence.

The company was not named but is reported to have been mainly targeting investors in New Zealand.

The Financial Crimes Unit said it is aware of several investors who have lost money to this scam, in one case as much as US$20,000.

The Cayman Islands Monetary Authority regularly publishes notices about companies that use websites with Cayman addresses but are not registered or licensed to trade in Cayman.

The police advised potential investors to be cautions and use the internet to research the company’s address and other unique identifiers.

Investors should also be suspicious of companies that filter telephone enquiries by voicemail. “Ensure that you are able to talk to someone when you make a telephone enquiry rather than receive a call back. Record any telephone numbers you receive investment calls from,” the police service said in a press release.

If it is possible, investors should insist on meeting representatives of investment companies in person before investing funds.

Anyone who has transferred to a fraudulent account should act quickly and contact their bank immediately, the police said. The bank will then contact the financial institution that the funds were sent to. Victims of a scam should keep all original documentations, emails, faxes and logs of communications.

Because scams and fraudulent websites can emerge and change very quickly, the police encourage the public to report any suspicions of possible internet scams by filing a complaint with the Financial Crimes Unit at 949-8797, regardless of whether a loss is suffered.