Financial Fraud Cases in Botswana: A Growing Concern

A recent report by the Financial Intelligence Agency (FIA) has revealed that Botswana lost over P14 million to fraudsters in a span of just five months last year. The agency highlighted a syndicate of seven individuals with four business entities who defrauded the public out of millions of pula using 16 bank accounts to funnel the funds.

How Did it Happen?

The report states that the syndicate received cash deposits through Automated Teller Machines (ATMs) amounting to P11.2 million and electronic wallet transactions worth P2.9 million between February and June 2021. The total loss was a staggering P14.1 million.

The Modus Operandi

Fraudsters target individuals and established companies by impersonating senior officials in businesses or government agencies to establish contact with unsuspecting businesspersons/agents.
They then offer fake tenders worth millions of pula to supply specialized equipment, claiming the products are sourced from outside the country.

Online Romance Scams

Some consumers were targeted through online romance scammers who create fake profiles on dating sites and social media platforms.
These scammers build trust with victims by giving them love and attention before asking for financial assistance or sending pictures of expensive gifts.

Other Schemes

Worshippers are being fooled into parting with their money by contributing to online churches or worthy causes, only to find out that the church minister impostors have turned out to be fraudsters raising funds to support their personal lifestyle.
A total of 167 Suspicious Transaction Reports (STRs) were filed in 2021, with a combined value of P394 million, compared to 102 STRs valued at P76 million in the same period in 2020.

Cybercrime on the Rise

The FIA found that cybercrime is escalating in scale and complexity, with a total of 31 reports received involving the defrauding of the public in the pretext of investing in cryptocurrencies.
Syndicates and individual fraudsters are using business and personal bank accounts to funnel funds from the public under the pretext of investing in virtual currency.

Warning Signs

The report warned that the public is being coerced into investing in fake cryptocurrency schemes, with new payment methods such as electronic wallets and mobile money transfer service being used to solicit funds from victims.
The FIA urged citizens to be vigilant and report any suspicious transactions to avoid losing their hard-earned money to fraudsters.

Take Action

Be cautious when receiving unsolicited offers or requests for financial assistance.
Verify the authenticity of business entities and individuals before transacting with them.
Report any suspicious transactions to the FIA to help prevent further losses.