Financial Crime World

Financial Fraud Examples on the Rise in Guyana Despite Pandemic

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Despite the challenges posed by the COVID-19 pandemic, financial fraud has continued to thrive in Guyana. The Financial Intelligence Unit (FIU) has reported a significant surge in fraudulent activity, with the majority of reports received by the unit related to financial fraud.

The Surge in Fraudulent Activity

According to Langevine, Director of the FIU, “crime is one of the things that seem to have flourished under the pandemic.” In 2020, the unit received 341 suspicious transaction reports, a trend that has continued into this year. This surge in fraudulent activity has been attributed to various factors, including the shift towards online transactions and the increased reliance on digital communication.

Types of Fraudulent Activity

The FIU has seen an increase in suspicious transactions related to online fraud, particularly romance scams and email compromise types of fraud. In the latter, scammers compromise the email accounts of senior executives at large companies, using the compromised account to send instructions to wire funds to fake suppliers.

Additionally, the unit has been monitoring incidents of smurfing, a technique used to launder money through the financial system. While not technically a crime, Langevine emphasized that it is an abuse of the system and will continue to work with law enforcement agencies to combat these types of fraudulent activities.

Collaboration and Information Sharing

To tackle these scams, the FIU has been collaborating with local and international agencies, including the FIUs of other countries. In 2021, there have been seven instances of information sharing, including with Suriname, Trinidad and Tobago, and the United States.

Tips for Staying Safe

Langevine encouraged individuals to be vigilant in reporting suspected fraud and emphasized that the FIU will continue to work tirelessly to bring perpetrators to justice. To stay safe from financial fraud, individuals can take the following steps:

  • Be cautious when sharing personal information online
  • Verify the identity of individuals or companies before conducting transactions
  • Monitor accounts regularly for suspicious activity
  • Report any suspected fraudulent activity to the FIU

By working together and staying informed, we can combat financial fraud and keep our communities safe.