Bhutanese Financial Markets See Surge in Scams: Police Warn Public as Cases and Victims Pile Up
Growing Number of Financial Fraud Cases in Bhutan
As the number of Bhutanese citizens seeking opportunities abroad grows, so does the risk of falling prey to financial scams. In the past 14 months, 28 cases of financial frauds have been reported to the police, resulting in an estimated Nu 10 M in losses. In the first quarter of 2024, 13 cases have already been documented, with the total financial toll exceeding Nu 10 M.
Deceptive Tactics Used by Scammers
Scammers have been exploiting the rising trend of emigration, using deceptive tactics such as:
- False lottery winnings
- Hyped investment opportunities
- Bitcoin promotions
Recent Scams and their Consequences
A recent scam left one Bhutanese student over Nu 100,000 in debt. The student, who was awaiting visa approval to study abroad, received a call from someone posing as a VISA department representative. The caller requested financial and personal information, which the unsuspecting student provided. After this, her account was drained, leaving her stranded and unable to pay off her student loans.
The scammers then demanded the student’s siblings’ account numbers and threatened to withhold her refund if she did not comply. The incident was reported to the Department of Law and Order (DLO), who later froze the scammer’s bank account.
Scammers Posing as VISA Office Officials
Scammers pretending to be VISA office officials have been phoning potential victims and requesting personal information, including citizenship identity card numbers, bank account numbers, and One-Time Passwords (OTPs). These details are then used to gain unauthorized access to victims’ bank accounts and carry out fraudulent transactions.
Preventing Financial Scams
The public is being urged to remain cautious. Karma Dorji, a representative from the Department of Law and Order (DLO), issued a statement saying:
“Not only does the DLO, but also institutions like the Royal Monetary Authority, GovTech, and financial organizations are collaborating to prevent scams. Our primary focus is on raising awareness. For example, the DLO issued a public notification on February 9th, 2024.”
Protecting Yourself from Financial Scams
The Department of Law and Order (DLO) advises the public not to give away OTPs to anyone, no matter who they claim to be. Banks also remind their customers that they will never request OTPs or mobile app login pins.
Other Measures Taken to Prevent Financial Scams
The Royal Monetary Authority (RMA) has also taken steps to protect the public. In a recent notification, they reminded citizens not to lend, share, or rent out their bank accounts, as such actions may facilitate fraudsters in illegally receiving or transferring money. They added that victims may be prosecuted under the law if their accounts are found to be involved in such illegal activities, regardless of their level of involvement or knowledge of the scam.