Financial Fraud on the Rise in Sao Tome and Principe: A Growing Concern for Businesses

Sao Tome and Principe, a country known for its stability and peacefulness, has unfortunately become a hotspot for various types of financial fraud. Despite being considered a moderate risk country by experts, financial scams and frauds have been on the rise, targeting unsuspecting business travelers.

The Rise of Financial Fraud

According to sources, petty theft and burglaries are common in crowded markets, beaches, and near hotels. However, it is the financial scams that pose a significant threat to businesses operating in the country. With the recent discovery of hydrocarbon resources, foreign investors are flocking to the country, creating an attractive target for fraudsters.

Underdeveloped Infrastructure Contributes to Rise in Financial Fraud

The country’s underdeveloped infrastructure has also contributed to the rise in financial fraud. Unreliable air travel and frequent delays have made it difficult for business travelers to keep track of their finances, leaving them vulnerable to scams. Additionally, the limited telecommunications infrastructure and lack of reliable electricity have made it challenging for businesses to operate efficiently.

Corruption a Significant Concern

Experts warn that corruption is a significant concern in Sao Tome and Principe, with the country’s political landscape traditionally structured around patrimonialism and kinship. This has led to an inadequate police force, making it difficult for authorities to effectively combat financial fraud.

Types of Financial Fraud

The types of financial fraud reported in Sao Tome and Principe include:

• Business email compromise scams
• Investment frauds
• Identity theft
• Fake invoices and payment requests
• Stolen sensitive information such as passwords and credit card numbers

Protecting Yourself from Financial Fraud

To protect themselves from these types of financial fraud, business travelers are advised to be cautious when conducting transactions in the country. They should:

• Verify all payments and invoices thoroughly
• Avoid using public computers or unsecured networks
• Keep their personal and financial information private

Conclusion

While Sao Tome and Principe is generally a stable country, businesses operating there must remain vigilant against financial fraud. By understanding the types of scams that are common in the country and taking necessary precautions, they can minimize the risk of falling victim to these illegal activities.