In two years, people living in T&T lost over $2 million to lottery scams.
A lottery scam is a type of advance fee fraud, a rising type of crime targetting Internet users around the world.
T&T’s Financial Intelligence Unit (FIU) has published advisories on several such financial scams, namely “e-mail hijacking,” advance fee fraud and “conference scams,” in order to assist the public in identifying the activity so as to reduce monetary loss and emotional harm, which the victims suffer.
In fact, just recently the FIU issued a warning to be on the lookout for false and misleading information being circulated by people claiming to be FIU agents, after it was brought to the body’s attention by people who had been contacted by the con artists. According to the FIU, these people may present bogus letters, e-mails, text messages or faxed documents purporting to be issued by the FIU.
“The FIU wishes to make it clear that it does not charge fees for services, issue clearance certificates or seize assets of any kind; does not communicate via text messages or social media e.g. Facebook and Twitter and requests no fees. Clearance certificates or similar invoices made in the name of or on behalf of the FIU are false,” a release stated.
While financial scams take many forms, the focus here, according to FIU public affairs officer Heather Baldwin-McDowell, is on the advance fee fraud, otherwise called the “419” or “Nigerian scam.”
“The common theme is a notification or invitation to take up an offer with the promise of significant sums of money or other reward. The intention is to persuade the intended victim to part with his money in the expectation of receiving a large future monetary gain or other benefit,” Baldwin-McDowell told the Sunday Guardian.
She said although the vast majority of recipients do not respond to the communication, a small percentage do, but as many millions of messages can be sent daily using technology it makes the scam worthwhile.
“As well, often persons are too embarrassed or too ashamed to admit that they were gullible, so they fail to report the fraud,” she said.
In the past two years, during the period October 2012 to Sept 2014, the FIU received 17 reports of advance fee fraud. Baldwin-McDowell explained, “These scams have induced citizens of T&T to wire/mail/transfer thousands of dollars of their savings to persons they do not know to claim ‘large fortunes,’ ‘lottery winnings,’ or ‘inheritance.’”
The reports reflect that scammers/fraudsters have requested sums as low as $5,000 to as much as $400,000 (TT dollars) at a time.
“Anyone can be a target,” she added.
Wide tentacles
The scam usually begins with a letter, e-mail, fax, text, phone call or on social network sites seeking contact with the potential victims. The fraudster may impersonate a known person or organisation which exists, or may create a fictitious person or organisation.
The intended victim is made to believe they were a selected recipient although the same communication is sent to thousands of intended victims. The subject line of an e-mail or message may read, “You are a winner;” “Dear conference invitee;” “Attention (your name) Beneficiary;” “My dear friend;” “From the desk of Barrister (name)” or “Your assistance is needed.”
Asked by the Sunday Guardian if the T&T Police Service had launched an official investigation and if there were any people of interest thus far, Baldwin-McDowell replied, “By law the FIU is not allowed to disclose this information or make any comment on this question. Refer to section 22 (1) of the Financial Intelligence Unit of Trinidad and Tobago Act Chap 72:01.” n Another example is a fraudulent conference e-mail invitation or Conference Scam.
In this scam, Baldwin-McDowell said, “The intended victim receives an e-mail invitation to a conference, seminar or other academic or professional event. The e-mail appears to come from an international or professional organisation such as the United Nations, various human rights organisations, non-governmental organisations, foundations, sporting foundations or key personnel in these organisations. The scammers may also use the names of organisations that do not exist, but closely resemble well-known organisations.”
These invitations are usually sent to a person’s e-mail address or through their professional networks such as LinkedIn.
These invitations, she added, frequently appeal to a benevolent humanitarian cause such as human rights, global peace, human trafficking, child abuse, racism or HIV/Aids awareness.
“The e-mail usually states that conference costs, flight and accommodation will be borne by the organising committee and that only a registration or processing fee is required,” she said.
“The conference is usually held in an exotic or international location and the names of bonafide hotels and conference facilities are often used. Visa assistance is offered at the time of registration. False e-tickets may be provided.”
More Info
The Financial Intelligence Unit of T&T (“the FIU”) is a specialised intelligence-gathering unit. It receives reports of suspicious transactions and activities from financial institutions and certain business sectors. It analyses this information with other information from various sources and produces intelligence, which it sends to law enforcement agencies to investigate. The FIU’s intelligence-gathering functions are therefore separate and distinct from investigative functions, which are carried out by law enforcement agencies.
Side Bar
Common types of advance fee scam are:
* Lottery winner
* Inheritance and its variant “unclaimed money”
* Employment or job offer
* Distressed relative/friend
* Romance
* Online sales
Common Elements – Be on the alert for:
* Requests to send money using wire transfer services such as Western Union and Money Gram. An international wire transfer is equivalent to sending cash; the transaction is fast and cannot be reversed.
* Non-face-to-face communication where you cannot determine the person’s true identity
* Delays or monetary hurdles which prevent the deal from occurring as planned, e.g. unexpected taxes; insurance or licence fees; clearance certificates; legal fees
* Psychological pressure, e.g. the offer will expire after a stipulated time or the money must be received to pay certain costs
* False documents, e.g. use of fake letters from international organisations or government offices to gain victim’s trust
* Fake cheques, e.g. where payment to the victim is required to solidify the victim’s confidence in the validity of the scheme
You may seek additional information on FIU Advisories by clicking on the FIU website link: www.fiu.gov.tt (Home Page>Resources Tab>FIU Publications>Advisories)